Net Present Value Versus Internal Rate of Return For discount factors use Exhibit 12B1 and Exhibit 12B2. Skiba Company is thinking about two different modifications to its current manufacturing process. The aftertax cash flows associated with the two investments follow: Skiba's cost of capital is 14%. Required: 1. Compute the NPV and the IRR for each investment. Round present value calculations and your final NPV answers to the nearest dollar. Round IRR answers to the nearest whole percent. Skiba's cost of capital is 14%. Required: 1. Compute the NPV and the IRR for each investment. Round present value calculations and your final NPV answers to the nearest dollar. Round IRR answers to the nearest whole percent. 2. Conceptual Connection: Explain why the project with the larger NPV is the correct choice for Skiba. NPV is an Imeasure and reveals how much the value of the firm will change for each project. IRR gives a measure of Thus, since NPV reveals the total wealth change attributable to each project, it is preferred to the IRR measure. 2. Conceptual Connection: Explain why the project with the larger NPV is the correct choice for NPV is a sure and reveals how much the value of the firm will change project. Thus, since NPV reveals the total wealth attribut: erred to the IRR measure. Exhibit 12B.1 Present Value of a Single Amount" Exhibit 12B.2 Present Value of an Annuity