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Project A has a cost of $15,000, returns $4,000 after-tax the first year and this amount increases by $1,000 annually over the 5-year life; Project
Project A has a cost of $15,000, returns $4,000 after-tax the first year and this amount increases by $1,000 annually over the 5-year life; Project B costs $15,000 and returns $13,000 after-tax the first year, followed by 4 years of $2,000 per year. The firm uses a 10% discount rate. Will your decision be different if you use IRR method?
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