Question: URGENT - PLEASE SHOW ALL STEPS AND CALCULATION Year A B 0 -65,000 -65,000 1 30,000 0 2 40,000 0 3 50,000 134,200 a) What
URGENT - PLEASE SHOW ALL STEPS AND CALCULATION
Year A B
0 -65,000 -65,000 1 30,000 0 2 40,000 0 3 50,000 134,200
a) What is the net present value (NPV) at 10% and internal rate of return (IRR) methods of both projects? Which would you recommend and why?
b) What is the cross-over rate? Explain the significance of this rate. c) Explain the reasons for selecting NPV over IRR if there are conflicts in the acceptance of projects.
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