Calculate the irr for both projects

Reference no: EM133164277

Task

Having heard about the concept of time value of money, the owners feel uneasy about the outcomes of the investment appraisal methods applied previously and so the owners of the business want you to re-evaluate the "Eco-Tint" against the alternative project "Eco-Blush".

Required

1. Calculate the Net Present Value (NPV) for both projects.

2. Calculate the IRR for both projects.

3. What would be your recommendation to the business about the investment based on the outcomes of NPV and IRR?

4. What you observe in comparison to the outcomes of the previous evaluation using ARR and payback period?

5. Outline the key advantages and disadvantages of the methods used (ARR, PP, NPV, IRR).

Reference no: EM133164277

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