Question
Consider the following two projects, and assume a company's cost of capital is 15 percent. Find the IRR and NPV of each project. Which projects
Consider the following two projects, and assume a company's cost of capital is 15 percent. Find the IRR and NPV of each project. Which projects add value to the company? If the company can choose only a single project, which project should it choose? Please show through excel sheets and equations.
| Year 1 | Year 2 | Year 3 | Year 4 | |
| Project 1 | -$40 | $130 | $19 | $26 |
| Project 2 | -$80 | $36 | $36 | $36 |
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