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Question 2. (20 marks) Real dreams flight school is presented with two mutually exclusive projects. Required return for both the projects is 15%. Year Project

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Question 2. (20 marks) Real dreams flight school is presented with two mutually exclusive projects. Required return for both the projects is 15%. Year Project A 0 -$130,000 $61,500 Project B -$459,000 $159,300 $168,400 1 N 3 $73,400 $68,100 $40,500 $154,800 $110,400 4 a. What is IRR for each project? 8 marks b. What is NPV for each project? 8 marks c. What if either of the projects should company accept? 4 marks

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