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Trident Corp. is evaluating two independent projects. The costs and expected cash flows are given in the following table. The companys cost of capital is
Trident Corp. is evaluating two independent projects. The costs and expected cash flows are given in the following table. The companys cost of capital is 10 percent.
| Year | A | B |
| 0 | $(312,500) | $(395,000) |
| 1 | $121,450 | $153,552 |
| 2 | $121,450 | $158,711 |
| 3 | $121,450 | $166,220 |
| 4 | $121,450 | $132,000 |
| 5 | $121,450 | $122,000 |
a. Calculate the projects NPV, discount payback of A and B
b. Calculate the projects IRR of A and B
c. Which project should be chosen based on NPV?
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