Question: plase long version ( not excel) Project A requires an initial investment of 1 mln z at the beginning of the first year and half
Project A requires an initial investment of 1 mln z at the beginning of the first year and half a million z at the end of the first year. The project generates 350'000 z of cash flow at the end of each year for 5 years. Project B requires an initial investment of half a million z at the beginning of the first year and 1 mln z at the end of the first year. The project generates 350'000 z of cash flow at the end of each year for 5 years. The discount rate is 5%. Calculate NPV, IRR and MIRR for both projects. Choose the best project. *use re-investment rate of 3% for MIRR calculation *for calculating IRR, use the difference between discount rates not higher than 5%
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