A company has the following 2 projects: Projects C0 C1 C2 C3 A-36 20 20 20 B -50 25 25 25 Assume that the discount rate is 10%.How much is the difference between the NPV values of these 2projects (i.e., NPV of Project A minus NPV of Project B)? A) 0.57B) 1.57 C) 3.67 D) 4.67 E) 13.17
A company uses Internal Rate of Return(IRR) criteria to analyze the following two mutually exclusiveprojects:Â Â Â Â Â
Project | C0 | C1 | C2 | C3 |
NorthEast | -1100 | 1000 | 350 | 50 |
SouthWest | -1100 | 0 | 300 | 1500 |
   Assume that thiscompany’s opportunity cost of capital (i.e., Hurdle rate for IRRanalysis) is 10%. Then,
- which project should be accepted based on IRR analysis?
- how much is the IRR of this accepted project? Â
    (i)               (ii)
         A)           ProjectNorthEast          20%
             B)ProjectSouthWest         19%
         C)           ProjectSouthWest         30%
             D)ProjectSouthWest         26%      Â
    E)    ProjectNorthEast          24%
