Question: please help i rate well! You are considering the folowing two projects and can take only one Your cost of capital is 112%. The cash
please help i rate well!
You are considering the folowing two projects and can take only one Your cost of capital is 112%. The cash flows for the two projects are as follows (million) Project Year 0 Year 1 Year 2 Year 3 Year 4 A - $99 $22 $32 $42 $48 B - $99 $48 $42 $32 $21 a. What is the IRR of each project? b. What is the NPV of each project at your cost of capital? c. At what cost of capital are you indifferent between the two projects? d. What should you do? a. What is the IRR of each project? The IRR for project As M Round to ona decimal place) The IRR for project Bis (Round to ono decimal place) b. What is the NPV of each project at your cost of capital? The NPV for promoct As Smilion (Round to two decimal places) The NPV for project is million (Round to two decimal places) c. Al what cost of capital are you indfor between the two projects? You will send toronto the cost of capital is * {Round to one decimal piace) d. What should you do? Give your cost of capital which project would you choose(Select the best chose below) d. What should you do? Given your cost of capital, which project would you choose? (Select the best choice below) A. You should invest in project A, as it has the higher IRR B. You should invest in project B, as it has the higher NPV OC. You should invest in project B, as it has the higher IRR OD. You should invest in project A as it has the higher NPV
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