calculate the net predent value and the internal rate of return?

which one to choose?

which one is more atractive? choose the one that is hight?

Fort Formatting Table Styles Aligament Is internal Rate of Return B C D E Session Nine Tutorial F G 2 Example: What is the NPV (assuming a 6% discount rate) and the IRR for the following $750,000 investment? 3 4 Investment Year One Year Two Year Three Year Four Year Five 5 Initial Investment $ (750,000) 6 Projected Net Cash Flows $ 100,000 $ 110,000 $ 120,000 $ 130,000 $ 135,000 7 Residual Value (9x Net Cash Flows) $ $ $ $ $ 1,215,000 8 Analysis $ (750,000 $ 100,000 $ 110,000 $ 120,000 $ 130,000 $ 1,350,000 9 10 NPV (6% Discount Rate) $ (750,000) $1,404,764 $ 654,764 11 12 Internal Rate of Return 23.2% 13 Follow-Up Activity: Based on NPV and IRR, which investment (Option A or Option B) is more attractive? 14 Year One Investment Year Two Year Three Year Five Year Four 15 Option A 16 Initial Investment $ (1,250,000) $ 100,000 $ 110,000 $ 120,000 $ 130,000 135,000 17 Projected Net Cash Flows Daca o Ninth Cinn e 10 PI Type here to search Review View T - A Merge Center $ -% 9 28 Fort | A32 Internal Rate of Return D E F G B $ (1,250,000) $ $ $ (1,250,000) $ 100,000 $ $ 100,000 $ 110,000 $ $ 110,000 $ 120,000 $ $ 120,000 $ 130,000 $ $ 130,000 $ 135,000 1,215,000 1,350,000 16 Initial Investment 17 Projected Net Cash Flows 18 Residual Value (9x Net Cash Flows) 19 Analysis 20 21 NPV (6% Discount Rate) 22 23 Internal Rate of Return 24 25 Option B 26 Initial Investment 27 Projected Net Cash Flows 28 Residual Value (9x Net Cash Flows) 29 Analysis 30 31 NPV (6% Discount Rate) 32 Internal Rate of Return Year One Year Two Year Three Year Four Year Five Investment $ (750,000) $ $ $ (750,000) $ 95,000 $ $ 95,000 $ 100,000 $ $ 100,000 $ 105,000 $ $ 105,000 $ 110,000 $ $ 110,000 $ 120,000 1,080,000 1,200,000 e Type here to search