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The manager of a local company has to choose between the two projects below. The required rate of return is 10%. Year Project A 0

The manager of a local company has to choose between the two projects below. The required rate of return is 10%.

Year Project A

0 -359000

1 95000

2 108000

3 90000

4 80000

5 20000

Project B -276000 40000 83000 105000 128000 148000

What is payback period for each project? What is the IRR for each project? Which project shall the manager choose?

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