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A company wants to estimate the net present value of two different projects using a desired discount rate of 1 0 % . The estimated
A company wants to estimate the net present value of two different projects using a
desired discount rate of The estimated financial schedule for the project is
summarized in the following tables.
a Estimate the NPV of each project. You can use calculator or excel spread
sheet, eighter way show your work
b Based on the estimated NPV values what conclusion we can draw?
c Based on the NPVs estimated in part A which project has higher rate of
return?
d Using Excel, estimate or iterate the return rate of the projects internal rate
of return, IRR Put the appropriate snips from excel supporting your answer.
Check correct your comment for part B
e Which project would you recommend to the company to choose?
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