QUESTION 3: NET PRESENT VALUE AND INTERNAL RATE OF RETURN [25 MARKS] (a) What are the conflicts between NPV and IRR? [4
Posted: Fri Jul 01, 2022 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 1 (233.51 KiB) Viewed 31 times
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]