Question: Question Completion Status: YVAVTIVITY ithmaar Holding B.S.C. (Bahrain Bourse, MITHMRS) is considering two independent projects that have the following cash flows. Year Project A Project
Question Completion Status: YVAVTIVITY ithmaar Holding B.S.C. (Bahrain Bourse, MITHMRS) is considering two independent projects that have the following cash flows. Year Project A Project B $ 55,000 $22,000 17,000 15,000 6,000 25,000 7,000 35,000 9% 10% Discount rate a) Calculate the Net Present Value (NPV) methods and explain which project is better. (1.5 marks) b) Calculate the Internal Rate of Return (IRR) of the two projects and explain which project is better. (1.5 marks) c) Calculate the Profitability Index (Pt) of the two projects and explain which project is better. (1.5 mark) Note. You are allowed to use Financial Calculator For the toolbar, press ALT-F10 (PC) or ALT+N+F10 (Mac) Arial 10pt BIVS Paragraph 0 A LX Q 5 t posse FREDE Question Completion Status: Ithmaar Holding B.S.C. (Bahrain Bourse, #THMRS) is considering two independent projects that have the following cash flows. Year Project A Project B 0 $ 22,000 $-55.000 1 17,000 15,000 2 6,000 25.000 3 7,000 35,000 Discount rate 9% 10% a) Calculate the Net Present Value (NPV) methods and explain which project is better. (1.5 marks) tis Calculate the internal Rate of Return (RR) of the two projects and explain which project is better. (1.5 marks) c) Calculate the Profitability Index (P) of the two projects and explain which project is better. (1.5 mark) For the toolbar, press ALT-F10(PC) or ALT+FN+F10 (Ma BIUS Avid 10p EE IE 4 2 I. x 0 42 o 3 t FO
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