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You have been given two projects with the following cash flows. Project A. -$500. $180, $175. $160.1800.$100 Project B. -$500. $200. $250. 1870. $25. $30
You have been given two projects with the following cash flows. Project A. -$500. $180, $175. $160.1800.$100 Project B. -$500. $200. $250. 1870. $25. $30 a. Rank the two projects with discount rate 12 %. b. Which project is preferred if you rank by IRR? c. Calculate the cross over rate, the discount rate at which the NPV of both projects are equal. d. Should you use the NPV or IRR to choose between the two projects? Discuss
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