Integrative Case 7

Consider two potential projects, Project C and Project D, with the following projected cash flows.

Projected Cash Flows:

Year	Project C	Project D
0	($400)	($500)
1	$80	$100
2	$100	$130
3	$120	$160
4	$150	$190
5	$180	$220

Requirements:

1. Calculate the Payback Period for each project.
2. Compute the Net Present Value (NPV) at a discount rate of 11%.
3. Find the Internal Rate of Return (IRR) for both projects.
4. Determine which project has a higher NPV and IRR.
5. Based on your analysis, decide which project should be accepted.