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Your firm is considering two projects with the following cash flows:

 

Discount rate: 12%

 

Project A: -$500 , $167, $180, $160, $ 100, $100

Project B: -500 , $200, $250, $170, $25, $ 30

 

A) If the appropriate discount rate is 12%, rank the two projects.

B) Which project is preferred if you rank by IRR?

D) Should you use NPV or IRR to choose between the two projects? Give a brief discussion

 

 

    • 10 years ago
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