Calculate the irr and npv for projects

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1. Your boss has told you to evaluate the cash flows for Machine 1 and Machine 2

Yr

Machine 1

Machine 2

0

(2,400,000)

(2,200,000)

1

700,000

700,000

2

800,000

600,000

3

900,000

500,000

4

800,000

400,000

5

700,000

700,000

Calculate the IRR and NPV for both projects. Your discount rate is 6%. Which machine are you going to recommend?  Justify your answer. Show all calculations using either Excel or a TVM Calculator.

2. If your weighted average cost of capital (WACC) is 5.5% for both projects, which one/both is a viable project?

Reference no: EM133056113

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