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Please help on the last part. CONFLICT BETWEEN IRR AND NPV RULES Suppose a firm is considering the following two mutually exclusive projects (they can

image text in transcribed Please help on the last part.

CONFLICT BETWEEN IRR AND NPV RULES Suppose a firm is considering the following two mutually exclusive projects (they can only pick one) and has a 4% cost of capital. The investments have the cash flows detailed below. Solve for the NPV and IRR of each; consult the table to determine the indifference point. Discount rate 4.00% Year 0 1 Project A -$25.00 $8.00 $10.00 $15.00 Project B $20.00 $10.00 $10.00 $6.00 2. 3 NPV $5.07 13.65% $4.03 15.66% IRR Discount rate Project A Project B 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

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