NVP & IRR

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NVP & IRR Problem:
4) Company K is considering two mutually exclusive projects. The cash flows of the projects are
as follows:
Year
0
1
2
3
4
5
6
7
Project A
-$2,000,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
Project B
-$2,000,000
5,650,000
a. Compute the NPV and IRR for the above two projects, assuming a 13% required rate of
return.

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