Question: Please do by hand (not excel), and do incremental analysis Question 2 (25 points): Given cash flows of projects A and B with unequal life

Please do by hand (not excel), and do incremental analysis Question 2Please do by hand (not excel), and do incremental analysis

Question 2 (25 points): Given cash flows of projects A and B with unequal life below, which project is a better investment on the basis of NPV and IRR analysis assuming a minimum rate of return of 12%? It is recommended that one apply incremental analysis techniques. Project A: I=30,000 C=-75,000 1=30,000 0 1 1 1=25,000 | 2 1=40,000 3 1=25000 4 L=$65,000 Year Project B: 1=90,000 1=95,000 C=-200,000 1=90,000 Year C: Cost, I: Income, L: Salvage Value I=80,000 2 L=$25,000 Question 2 (25 points): Given cash flows of projects A and B with unequal life below, which project is a better investment on the basis of NPV and IRR analysis assuming a minimum rate of return of 12%? It is recommended that one apply incremental analysis techniques. Project A: I=30,000 C=-75,000 1=30,000 0 1 1 1=25,000 | 2 1=40,000 3 1=25000 4 L=$65,000 Year Project B: 1=90,000 1=95,000 C=-200,000 1=90,000 Year C: Cost, I: Income, L: Salvage Value I=80,000 2 L=$25,000

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