Calculate the npv


Problem:

Alpha Co. is investigating two mutually exclusive projects: A and B with common cost of capital k = 5%.

A: -$1000, $277, $277, $277, $277, $277 B: -$600, $175, $175, $175, $175, $175,

Required:

Question 1: Calculate the NPV's at 5% and IRR's.

Question 2: Sketch the NPV profiles together on a single pair axes.

Question 3: Explain which is preferred at k = 5%. Which would be preferred at k = 10%?

Note: Please show basic calculation

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Accounting Basics: Calculate the npv
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