Question: Net Present Value Versus Internal Rate of Return For discount factors use EXHIBIT 14A.1 and EXHIBIT 14A.2. A Company is thinking about two different

Net Present Value Versus Internal Rate of Return For discount factors use EXHIBIT 14A.1 and EXHIBIT 14A.2. A Company is thinking about two different modifications to its current manufacturing process. The after-tax cash flows associated with the two investments follow: Year 0 Project I $(100,000) 1 2 134,560 Project II $(100,000) 63,857 63,857 The company's cost of capital is 14%. Required: 1. Compute the NPV and the IRR for each investment. Round present value calculations and your final NPV answers to the nearest dollar. Round IRR answers to the nearest whole percent. NPV IRR Project I Project II 7,270 X 16 % 7,922 X 18 % 2. Conceptual Connection: Why the project with the larger NPV is the correct choice for the company. NPV reveals the total wealth change attributable to each project.

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