What will be investment decision

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The net cash flows for a two mutually exclusive projects "Superman Project" and "Batman Project" are shown in the following table. The company current cost of capital is 12%.

Year                       Superman Project                     Batman Project

0                                  -2000                                 -2000

1                                    1000                                    1000

2                                      1000                                  1500

3                                       1500                                   500

4                                      1000                                         500

Question 1: Based on the net present value & internal rate of return techniques, what will be your investment decision?

Reference no: EM132595746

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