Discuss the directors approach to capital spending should


Required:

a) Calculate the net present value for both projects
b) Calculate the IRR for both projects (to one decimal place)
c) Compare and contrast the two methods.
d) Discuss the directors' approach to capital spending. Should they accept either both projects, or only one of them, or neither of them? What about Gonzalo's view that they should look at the projects in the light of the strategic plan?

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Financial Accounting: Discuss the directors approach to capital spending should
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