Question: Please evaluate the two mutuallly exclusive projects whose cash flows are given below. Discount rate is 10%. Use NPV, IRR and profitability index for decision
Please evaluate the two mutuallly exclusive projects whose cash flows are given below. Discount rate is 10%. Use NPV, IRR and profitability index for decision making. Explain the reason for your choice.
\begin{tabular}{ccc} Years & Project M & Project Y \\ \hline 0 & (60000) & (60000) \\ 1 & 20000 & 0 \\ 2 & 20000 & 0 \\ 3 & 20000 & 50000 \\ 4 & 20000 & 50000 \end{tabular}
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