Question: Don't use excel, solve using proper formulas. ABC Ltd. is considering two mutually exclusive projects, A and B. Project A involves an outlay of Rs.

Don't use excel, solve using proper formulas. ABC Ltd. is considering

Don't use excel, solve using proper formulas.

ABC Ltd. is considering two mutually exclusive projects, A and B. Project A involves an outlay of Rs. 100 million which will generate an expected cash inflow of Rs. 25 million per year for 6 years. Project B calls for an outlay of Rs. 50 million which will produce an expected cash inflow of Rs. 13 million per year for 6 years. The company's cost of capital is 12 percent. Required: a. Calculate the NPV and IRR of each project. b. What is the NPV and IRR of the differential project (project A over B)

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