Capital budgeting

Company B White Chocolate wants to invest CZK 45,000,000. WACC is estimated at 15%.

Company considers two investments. Expected cash inflows you may find in the table 1:

Table 1
years	1	2	3	4	5	6
Project 1	-5 000 000	5 000 000	10 000 000	20 000 000	30 000 000	30 000 000
Project 2	12 000 000	12 000 000	12 000 000	12 000 000	12 000 000	11 500 000

For both projects calculate

c) IRR.

d) Evaluate the projects based on the methods above, choose better investment option and justify your choice.