Use the table for the question(s) below.
Consider the following two projects:

-Assume that projects A and B are mutually exclusive.The correct investment decision and the best rationale for that decision is to

Question

Use the table for the question(s) below.
Consider the following two projects:
 
-Assume that projects A and B are mutually exclusive.The correct investment decision and the best rationale for that decision is to

Quizplus · Accepted Answer

C) NPVA = -100 + 40 / (1.15)¹ + 50 / (1.15)² + 60 / (1.15)³ = 12.04
NPVB = -73+ 30 / (1.15)¹ + 30 / (1.15)² + 30 / (1.15)³ + 30 / (1.15)⁴ = 12.64
IRR A
CF₀ = -100
CF₁ = 40
CF₂ = 50
CF₃ = 60
Compute IRR = 21.65%.
IRR B
CF₀ = -73
CF₁ = 30
CF₂ = 30
CF₃ = 30
CF₄ = 30
Compute IRR = 23.34%.

Use the Table for the Question(s) Below