Explain your rationale for each decision

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Reference no: EM13137817

Decision-Making and Cash Flow Data
Consider the following data for Projects A and B.
Project A Project B
PV factor 5% PV factor of 8%
Cash flows Year Cash flows Year
–500 0 –1000 0
86 1 220 1
150 2 300 2
200 3 300 3
200 4 300 4

• Compute IRR, NPV, and payback for both projects. Show all calculations.

• Based on your analysis, would you recommend the management to go ahead with Project A? Why or why not?

• Based on your analysis, would you recommend the management to go ahead with Project B? Why or why not?

• If the company can take up only one project due to limited resources, which project would you recommend that the company choose? Why?

Show all calculations and explain your rationale for each decision.

Present your calculations and recommendations in a Word document formatted in APA style.

Reference no: EM13137817

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