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Year Project A Project B 0 -425,000 -500,000 1 200,000 280,000 2 210,000 220,000 3 175,000 180,000 4 175,000 180,000 5 175,000 180,000 Use the
Year | Project A | Project B |
0 | -425,000 | -500,000 |
1 | 200,000 | 280,000 |
2 | 210,000 | 220,000 |
3 | 175,000 | 180,000 |
4 | 175,000 | 180,000 |
5 | 175,000 | 180,000 |
- Use the IRR approach to determine which project to choose.
- Graph the NPV profiles for each project.
- At what rate will the two projects have the same NPV?
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