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THERE ARE TWO CHOICES OF INVESTMENT OF $50 000 (CASE_1, COMPANYS USES, OWN FUNDS, OR CASE_2, SIMPLE LOAN, THE COMPANY PAYS YEARLY CAPEX EXPENSES AS

THERE ARE TWO CHOICES OF INVESTMENT OF $50 000 (CASE_1, COMPANYS USES, OWN FUNDS, OR CASE_2, SIMPLE LOAN, THE COMPANY PAYS YEARLY CAPEX EXPENSES AS COST). STATE THE ADVANTAGES AND DISADVANTAGES OF EACH CASE; CALCULATE THE IRR AND NPV OF THE INVESTMENT

CASE_1 CASE_2
EOY SAVINGS COST CASH_FLOW EOY SAVINGS COST CASH_FLOW
0 50,000 -50,000 0
1 20,000 20,000 1 20,000 14,000 6,000
2 20,000 20,000 2 20,000 14,000 6,000
3 20,000 20,000 3 20,000 14,000 6,000
4 20,000 20,000 4 20,000 14,000 6,000
5 20,000 20,000 5 20,000 14,000 6,000
SUM= 30,000
NPV= NPV=
IRR= IRR=

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