Project s has a cost of 10000 and is expected to produce


Project S has a cost of $10,000 and is expected to produce benefits of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Calculate the two projects' NPVs and IRRs, assuming a cost of capital of 12%. Which project would be selected, assuming they are mutually exclusive, using each ranking methods? Which should actually be selected?

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Operation Management: Project s has a cost of 10000 and is expected to produce
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