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only need irr Farmer Brown is planning to plant one of two types of alfalfa seed. The more expensive of the two will produce higher

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Farmer Brown is planning to plant one of two types of alfalfa seed. The more expensive of the two will produce higher yields over a 3 year period. The projects are mutually exclusive, and the opportunity cost of capital is 12 percent. He has calculated the following after tax net cash flows: Year 0 1 2 3 Select Seed (RM) (4,000) 3,000 2,000 1,000 Cheap Seed (RM) (840) 630 630 420 Calculate each project's net present value and internal rate of return. Which type of alfalfa seed should Farmer Brown plant? (8 marks)

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