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QUESTION 19 Ithmaar Holding B.S.C. (Bahrain Bourse, #ITHMRS) is considering two independent projects that have the following cash flows. Year Project A $-22.000 17,000 6,000

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QUESTION 19 Ithmaar Holding B.S.C. (Bahrain Bourse, #ITHMRS) is considering two independent projects that have the following cash flows. Year Project A $-22.000 17,000 6,000 4 Calculate the Net Present Value (NPV) methods and explain which project is better. (1.5 marks) Calculate the Internal Rate of Return (IRR) of the two projects and explain which project is better. (1.5 marks) alculate the Profitability Index (Pl) of the two projects and explain which project is better. (1.5 mark) You are allowed to use Financial Calculator he toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) 1 2 3 Discount rate 7,000 9% Project B 1-65,000 15,000 25,000 35,000 10%

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