Question 2 (10%) Sugar Glider Flight School is presented with the following two mutually exclusive projects. The required return for both projects is 12% M N 0 -100,000 400,000 1 92,250 238,950 2 110,100 252,600 3 102,150 232,200 4 60,750 165,600 IRR 88.49% 44.73% a) What is the NPV for each project (4%)? b) Using IRR, which project will you accept? Give TWO reasons for your decision. (3%) c) Using NPV, which project will you accept? Give TWO reasons for your decision. (3% Complete the table below: N M (2%) Decision Based on IRR (1%); NPV IRR (2%) Reason 1 (1%): Reason 2 (1%) Mamal, Ankit 1/16 1 2 3 4 IRR 92,250 110,100 102,150 60,750 88.49% 238,950 252,600 232,200 165,600 44.73% a) What is the NPV for each project (4%)? b) Using IRR, which project will you accept? Give TWO reasons for your decision. (3%) c) Using NPV, which project will you accept? Give TWO reasons for your decision. (3% Complete the table below: N NPV IRR M (2%) Decision Based on IRR (1%): (2%) Reason 1 (1%): Reason 2 (1%): NPV Decision based on NPV (1%): Reason 1 (1%): Reason 2 (1%)