Main dates of two mutually exclusive projects:

Name	Variant A	Variant B
Initial cash flow (tHUF)	24 250	14 450
Lifetime (year)	7	5
Net operating cash flow p.a. (tHUF)	8 000	6 500
Expected rate of return (%)	16	16

Solution problems:

1. Calculate the projects net present value!
2. Which of the variants would you choose if applying NPV as decision criterion?
3. Which variant is better considering also the different lifetime of the projects?
4. Estimate the internal rate of return of the projects by using tables (so not with punctually computing)!