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Cash Flow t= Project A Project B 0 -18,000 -20,000 1 5,000 6,000 2 6,000 7,000 3 6,000 6,500 4 5,000 5,000 5 5,000 5,000

Cash Flow t=

Project A

Project B

0

-18,000

-20,000

1

5,000

6,000

2

6,000

7,000

3

6,000

6,500

4

5,000

5,000

5

5,000

5,000

What is the NPV of Project A? If the required rate of return is 10%, then do you accept the project?

and

What is the IRR of Project B? If the required rate of return is 10%, then do you accept the project?

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