4. You just landed your dream job, right after graduation day. The first day at the office your supervisor gives makes you the team head for analyzing project CV. You receive the following information:

Additional information: -Irlandas tax rates: Average= 15% Effective= 28% Marginal= 35% -Hong Kons tax rates: Average= 25% Effective= 38% Marginal= 45%

Required: a. Using the NPV what project would you select? Assume a WACC of 12%. b. What is the IRR for each project? c. What are the pros and cons of using NPV and IRR? d. Assuming the IRR and NPV favor different projects. Which one you would use? Why?

Beta Alt-Hong Kong Depreciation InterestNet Income Interest Net Income $ $ $ Alpha Alt-Irlanda Year EBIT Depreciation 2020 Cost= $ 15,000,000 2021 $ 1,500,000 $ 882,353 2022 1,650,000 882,353 2023 1,815,000 882,353 2024 1,996,500 882,353 2025 2,196,150 882,353 2026 2,415,765 882,353 2027 2,174,189 882,353 2028 1,956,770 882,353 2029 1,761,093 882,353 2030 1,584,983 882,353 2031 1,426,485 882,353 2032 1,283,837 882,353 2033 1,540,604 882,353 2034 1,848,725 882,353 2035 2,218,470 882,353 2036 2,662,164 882,353 2037 3,194,596 882,353 950,000 894,118 841,522 792,021 745,432 701,583 660,313 621,471 584,914 550,507 518,125 487,647 458,962 431,964 406,554 382,639 360,131 355,000 390,500 429,550 472,505 519,756 571,731 514,558 463,102 416,792 375,113 337,601 303,841 364,610 437,532 525,038 630,045 756,054 EBIT Cost=$ 20,000,000 1,250,000 1,312,500 1,378,125 1,447,031 1,519,383 1,595,352 1,675, 120 1,926,387 2,215,346 2,547,647 2,929,795 3,369,264 3,874,653 1,549,861 619,945 1,859,834 743,933 1,176,471 $ 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,100,000 $ 480,000 1,035,294 504,000 974,394 529,200 917,077 555,660 863,131 583,443 812,359 612,615 764,573 643,246 719,598 739,733 677,269 850,693 637,430 978,297 599,934 1,125,041 564,644 1,293,797 531,4291,487,867 500,169 595, 147 470, 747 238,059 443,056 714,176 416,994 285,670 Beta Alt-Hong Kong Depreciation InterestNet Income Interest Net Income $ $ $ Alpha Alt-Irlanda Year EBIT Depreciation 2020 Cost= $ 15,000,000 2021 $ 1,500,000 $ 882,353 2022 1,650,000 882,353 2023 1,815,000 882,353 2024 1,996,500 882,353 2025 2,196,150 882,353 2026 2,415,765 882,353 2027 2,174,189 882,353 2028 1,956,770 882,353 2029 1,761,093 882,353 2030 1,584,983 882,353 2031 1,426,485 882,353 2032 1,283,837 882,353 2033 1,540,604 882,353 2034 1,848,725 882,353 2035 2,218,470 882,353 2036 2,662,164 882,353 2037 3,194,596 882,353 950,000 894,118 841,522 792,021 745,432 701,583 660,313 621,471 584,914 550,507 518,125 487,647 458,962 431,964 406,554 382,639 360,131 355,000 390,500 429,550 472,505 519,756 571,731 514,558 463,102 416,792 375,113 337,601 303,841 364,610 437,532 525,038 630,045 756,054 EBIT Cost=$ 20,000,000 1,250,000 1,312,500 1,378,125 1,447,031 1,519,383 1,595,352 1,675, 120 1,926,387 2,215,346 2,547,647 2,929,795 3,369,264 3,874,653 1,549,861 619,945 1,859,834 743,933 1,176,471 $ 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,176,471 1,100,000 $ 480,000 1,035,294 504,000 974,394 529,200 917,077 555,660 863,131 583,443 812,359 612,615 764,573 643,246 719,598 739,733 677,269 850,693 637,430 978,297 599,934 1,125,041 564,644 1,293,797 531,4291,487,867 500,169 595, 147 470, 747 238,059 443,056 714,176 416,994 285,670