Be very detailed. Show formulas that is used for your conclusions. Give more than one examples. Show...

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Finance

Be very detailed. Show formulas that is used for yourconclusions.
Give more than one examples. Show working step by step.
Explanation must excess 150 words.
Part A:
You have calculated the NPV and IRR for two investment projectsbased on the costs and cash flows, but you can only select the bestone to choose between project A, and Project B. Based on thefollowing data, which one will you select, and why?
ProjectA ProjectB
NPV: $10,000 $9,000
IRR: 9 % 12%
PART B:
If you invested in every stock listed on the New York StockExchange, would you be fully diversified? Would you have eliminatedall the risks? Explain.
You must provide any in-text citations as per the APA guide.Failure to comply with the APA standard will cause a reduction inyour grade.

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PART A SOLUTION Comparison of Net Present Value and Internal Rate of Return Methods Similarity 1 Both the net present value and the internal rate of return methods are discounted cash flow methods which mean that they consider the time value of money 2 Both these techniques consider all cash flows over the expected useful life of the investment Different conclusion in the following scenarios There are circumstancesscenarios under which the net present value method and the internal rate of return methods will reach different conclusions Scenario 1 Scale or Size Disparity Being IRR a relative measure and NPV an absolute measure in case of See Answer

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Be very detailed. Show formulas that is used for yourconclusions.Give more than one examples. Show working step by step.Explanation must excess 150 words.Part A:You have calculated the NPV and IRR for two investment projectsbased on the costs and cash flows, but you can only select the bestone to choose between project A, and Project B. Based on thefollowing data, which one will you select, and why?ProjectA ProjectBNPV: $10,000 $9,000IRR: 9 % 12%PART B:If you invested in every stock listed on the New York StockExchange, would you be fully diversified? Would you have eliminatedall the risks? Explain.You must provide any in-text citations as per the APA guide.Failure to comply with the APA standard will cause a reduction inyour grade.