Your firm is considering two projects with the following cash flows:
Discount rate: 12%
Project A: -$500 , $167, $180, $160, $ 100, $100
Project B: -500 , $200, $250, $170, $25, $ 30
- A) If the appropriate discount rate is 12%, rank the two projects.
- B) Which project is preferred if you rank by IRR?
- D) Should you use NPV or IRR to choose between the two projects? Give a brief discussion