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The cash flows of Project A and Project B are listed on the left. Which project would you choose according to the following criteria: NPV,
The cash flows of Project A and Project B are listed on the left. Which project would you choose according to the following criteria: NPV, Profit Index, IRR?
Year | A | B | Interest rate | 5% |
0 | -5000000 | |||
1 | 1000000 | -10000 | ||
2 | 3500000 | 8000 | ||
3 | 805000 | 2000 | ||
4 | 500000 | 5000 | ||
5 | 0 | 100 |
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