Step 3 B and C

b. NPV at 23% Use Same Cash Flows Use the cash flows calculated for Type C. Calculate NPV at 23% Type C: -270, 000 87, 900 -12, 900 NPV = + IM- + (1.23)0 (1.23) (1.23) 10 After summing, NPV = P - 594, 493 Explanation: At 23%, Type A remains the best option c. IRR for Type A vs. Type C Solve for IRR Using Trial and Error Type A IRR ~ 15.5% Type CIRR ~ 14.1% Explanation: Type A has the highest IRR, making it the preferred choice