The net cash flow for two projects in Rs.) A and B is as follows:
1
3
2
4
0
Year
Project A
- 10,000 -3.000 4.000 6,000 8,000
Project B
-5,000 -2,000
1,000
3,000 5,000
a. Use the net present value (NPV) criterion to decide which project is the
most profitable if a discount rate of 6% is used.
7'b. Calculate the IRR and interpret.
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