QUESTION 3: NET PRESENT VALUE AND INTERNAL RATE OF RETURN [25 MARKS] (a) What are the conflicts between NPV and IRR? [4
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
QUESTION 3: NET PRESENT VALUE AND INTERNAL RATE OF RETURN [25 MARKS] (a) What are the conflicts between NPV and IRR? [4
QUESTION 3: NET PRESENT VALUE AND INTERNAL RATE OF RETURN [25 MARKS] (a) What are the conflicts between NPV and IRR? [4 Marks] (b) A project costs $2.000 and is expected to last 2 years, producing cash income of $1,500 and $500 respectively. The cost of the project can be depreciated at $1,000 per year Given a 10% required return, compare the NPV using cash flow to the NPV using accounting income (6 Marks]