1. Your boss has told you to evaluate the cash flows for Machine 1 and Machine 2

Yr	Machine 1	Machine 2
0	(2,400,000)	(2,200,000)
1	700,000	700,000
2	800,000	600,000
3	900,000	500,000
4	800,000	400,000
5	700,000	700,000

Calculate the IRR and NPV for both projects. Your discount rate is 6%. Which machine are you going to recommend? Justify your answer. Show all calculations using either Excel or a TVM Calculator.

2. If your weighted average cost of capital (WACC) is 5.5% for both projects, which one/both is a viable project?