Question

You have to choose one project. Cost of Capital is 11% 0                      1          &nbs

  1. You have to choose one project. Cost of Capital is 11%

0                      1                      2                      3                      4

___________________________________________________________________

A                     -100                 25                    30                    40                    50

            B                     -100                 50                    40                    30                    20

How much is the superior project’s proper metric (NPV or IRR? And how much is it?)

Choice criteria is equal to  __________ (NPV number, or IRR%)

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