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Q 8 A corporation is considering two mutually exclusive projects. Both projects require the same investment, but have different patterns of cash-inflow. The cash-flows are

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Q 8 A corporation is considering two mutually exclusive projects. Both projects require the same investment, but have different patterns of cash-inflow. The cash-flows are shown below for years 1 to 7. All cash-flows are in thousands of dollars. The corporation applies a 10\% discount rate. 1. Rank the projects by Payback Period, Discounted Payback Period, NPV, Profitability Index and IRR. 2. At what discount rate will Project 1 and Project 2 have the same NPV

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