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1 the discount rate is 10 if we choose using npv rule which


1. These two projects X and Y have these cash flows:

Project X

Year 0 - $ 1,200

Year 1 - $ 600

Year 2 - $ 480

Year 3 - $ 300

Year 4 - $ 200

Project Y

Year 0 - $ 1,500

Year 1 - $ 750

Year 2 - $ 500

Year 3 - $ 400

Year 4 - $ 320

1. The discount rate is 10%, if we choose using NPV rule, which project we choose?

2. If using IRR rule, which project choose?

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Business Economics: 1 the discount rate is 10 if we choose using npv rule which
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