Calculate npv-irr for two mutually exclusive projects


Question: Calculate the NPV and IRR for these two mutually exclusive projects. For both projects the required rate of return is 10%. Which project would you select and why? Provide sufficient detail to demonstrate your savvy financial skills.

Year              0      1       2       3       4    NPV    IRR (%)
Project A    -100    50      50     50      50
Project B    -400    170   170    170    170

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Finance Basics: Calculate npv-irr for two mutually exclusive projects
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