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You were referred to an investment specialist in a real estate company, and the financial manager asked you to study the two available investment projects,

You were referred to an investment specialist in a real estate company, and the financial manager asked you to study the two available investment projects, ie Project A and Project B, and express your opinion on the two projects. The cash flows represent the percentages shown in the following table of the investment volume 0

Project B Project A year
11011= 0 11011= 0 0
35% 15% 1
40% 25% 2
24% 35% 3
12% 50% 4
1500 +11011= 0 1000+11011= 0 Residual value

If you know that the required return on the investment (discount rate 10%) 1- What is required to find the net present value of the two projects and express your opinion on the two projects? 2 - Finding the profitability indicator for the two projects? 3- Find the internal rate of return (IRR) for the two projects? 4- Which of the two projects is accepted?

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