Question: Two projects are considered: A and B. The first project (A) requires an investment of 30,000$ now (today). In return, the investor will receive five
Two projects are considered: A and B. The first project (A) requires an investment of 30,000$ now (today). In return, the investor will receive five annual payments of 8500, the first of which will be done one year after the investment. The second project (B) also requires an investment of 30,000$ now (today). In return, the investor will be paid 20000 one year after the investment. and another 25 000 two years after the investment. c) Calculate IRR for project B. by hand d) Calculate NPV and IRR using by excel e) Determine the interest rate for which these two projects. have the same NPV.
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