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Cash Flow (S) Discount Rate 0.00% 2.50% 5.00% 7.50% 10.00% 12.50% 15.00% 17.50% 20.00% 22.50% 25.00% 27.50% 30.00% NPV B 2,100.00 2 Year NPVA 3,700.00
Cash Flow (S) Discount Rate 0.00% 2.50% 5.00% 7.50% 10.00% 12.50% 15.00% 17.50% 20.00% 22.50% 25.00% 27.50% 30.00% NPV B 2,100.00 2 Year NPVA 3,700.00 Project A ProjectB $ $ 6 7 8 9 10 (9,800.00)$(4,900.00) 3,000.00 1,500.00 3,200.00 1,000.00 3,300.00 4,000.00 $4,000.00 500.00 12 14 15 16 17 18 19 20 21 23 24 Second: . Based on your profile table respond to the following questions why create a PV table, what do you learn from this table about the two projects? (2 points) Which project would you select to invest in if your required rate of return were 10.0%, and why? (2 points) Which project would you select to invest in if your required rate of return were 12.5%; why? (2 points) Third: . Calculate the IRR of both projects using the appropriate Excel function o Explain what the IRR tells you about the project? o If your required rate of return were 20% in which project would you invest: why
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