You just landed your dream job, right after graduation day.

The first day at the office your supervisor gives makes you the team head for analyzing project CV.

You receive the following information:

Additional information:

-Irlandas tax rates:

Average= 15%

Effective= 28%

Marginal= 35%

-Hong Kons tax rates:

Average= 25%

Effective= 38%

Marginal= 45%

Required:

a. Using the NPV what project would you select?

Assume a WACC of 12%.

b. What is the IRR for each project?

c. What are the pros and cons of using NPV and IRR?

d. Assuming the IRR and NPV favor different projects. Which one you would use? Why?