Question: IRR and NPV: 2 points Year Project A Project B 0 -100000 -120000 1 40000 0 2 40000 -30000 3 40000 200000 Calculate the two

  1. IRR and NPV: 2 points

Year

Project A

Project B

0

-100000

-120000

1

40000

0

2

40000

-30000

3

40000

200000

  1. Calculate the two projects IRRs.

  2. Calculate the two projects NPV. (there was no rate of discounting given in the question..)

  3. Calculate the traditional payback period for each project.

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