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The cash flows for two independent projects are found below: Project 1 Project 2 Year 0 (300,000.00) (600,000.00) Year 1 85,000.00 150,000.00 Year 2 75,000.00
| The cash flows for two independent projects are found below: | |||||
| Project 1 | Project 2 | ||||
| Year 0 | (300,000.00) | (600,000.00) | |||
| Year 1 | 85,000.00 | 150,000.00 | |||
| Year 2 | 75,000.00 | 145,000.00 | |||
| Year 3 | 82,000.00 | 145,000.00 | |||
| Year 4 | 83,000.00 | 175,000.00 | |||
| Year 5 | 87,000.00 | 190,000.00 | |||
| a. Calculate the IRR for each project. | |||||
| b. Calculate the NPV for each project with discounts rates of 10, 15 and 20% | |||||
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