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[25 Marks] You have two investment options A and B. Which one should you go for? Negative cash flows are investments and positive cash flows

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[25 Marks] You have two investment options A and B. Which one should you go for? Negative cash flows are investments and positive cash flows are income. The rate of return is 5%. 0 1 2 3 4 5 A -50 -100 50 100 200 400 B -20 10 150 200 -100 300 (a) What is the NPV of both investment options? (24 Marks] (b) Which investment is better? and why? (1 Mark] (c) What is the IRR of both investment options? (to the nearest percent)

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