Question: Decision-Making at Microsoft Values: Project A Investment: $1,000,000 Project A NPV: $200,000 Project B Investment: $800,000 Project B NPV: $250,000 Requirements: Calculate the IRR for

Decision-Making at Microsoft

    • Values:
      • Project A Investment: $1,000,000
      • Project A NPV: $200,000
      • Project B Investment: $800,000
      • Project B NPV: $250,000
    • Requirements:
      1. Calculate the IRR for both Project A and Project B.
      2. Determine which project Microsoft should choose based on NPV.
      3. Discuss the limitations of NPV and IRR in investment decision-making.
      4. Recommend criteria for effective project selection at Microsoft.

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