The wan-ki manufacturing company must decide between

Reference no: EM13484461 , Length: 15

The Wan-Ki Manufacturing Company must decide between investment projects A and B, which are mutually exclusive. The data on these projects are as follows (in thousands of dollars):

Cash Flows, per Year

Project	0	1	2	3	4
A	(100)	$120.00
B	(100)				$193.80

(a) For each project, compute the NPV at 12 percent cost of capital, and the IRR. (b) Explain why the rankings conflict. Recommend which project should be chosen.

Reference no: EM13484461

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