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Assume you have these two projects and you have to choose one of them (you have a capital constraint). Which one would you choose if
Assume you have these two projects and you have to choose one of them (you have a capital constraint). Which one would you choose if the required rate of return is 10%? You need to find NPV, Payback period, and IRR for each project. You need to show calculation and justification of your answer. (without any plagiarism)
Project A
0 | 1 | 2 | 3 | |
FCF | -,1000 | 100 | 200 | 2,000 |
Project B
0 | 1 | 2 | 3 | |
FCF | -,1000 | 650 | 650 | 650 |
You have to find profitability index for both project and include it into your analysis. (without any plagiarism)
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