Calculate npv and irr to formulate your decision

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Net Present Value & IRR: Jekyll & Hyde Corp. is evaluating two mutually exclusive projects. Their cost of capital is 15 percent. Costs and cash flows are given in the following table.

Which project should be accepted? Calculate NPV and IRR to formulate your decision.

Year Project 1 Project 2

0 ($1,250,000) $0

1 $250,000 $350,000

2 $350,000 $350,000

3 $450,000 $350,000

4 $500,000 $350,000

5 $750,000 $350,000

Reference no: EM131912914

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