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-3. The net cash flow for two projects, A (fast food) and B amusements), is as follows: Year 0 1 2 3 4 5 Project

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-3. The net cash flow for two projects, A (fast food) and B amusements), is as follows: Year 0 1 2 3 4 5 Project A-420 000 Project B -95 000 -5 000 122 000 130 000 148 000 150 000 -10 000-120 000 200 000 110 000-50 000 (a) Use the net present value criterion to decide which project is the most profitable if a discount rate of (i) 6% and (ii) 8% is used. (b) Estimate the IRR of each project. Which project would now be considered more profitable

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