In: Finance
You are considering two mutually exclusive (you can do one or the other – not both) projects with the following cash flows. Using NPV and IRR, which project should you accept if the discount rate is 5 percent? What if the discount rate is 10 percent?
Year |
Project A |
Project B |
0 |
-$200,000 |
-$200,000 |
1 |
100,000 |
0 |
2 |
100,000 |
0 |
3 |
100,000 |
300,000 |