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Your firm is considering two projects with following cash flows: [4 points) Year 0 1 2 3 Project A -500 180 175 160 100 100
Your firm is considering two projects with following cash flows: [4 points) Year 0 1 2 3 Project A -500 180 175 160 100 100 Project B -500 200 250 170 25 30 4 5 a. If discount rate is 12%, rank the two projects using NPV. b. Which project is preferred if you rank by IRR? C. Calculate the crossover rate. d. Should you use NPV or IRR
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