Designed to improve the efficiency of their routing system

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Reference no: EM131527764

The World Transport Co. is considering two proposals for new software designed to improve the efficiency of their routing system. If the required return is 10 percent, what do you recommend? Why? You must calculate NPV and IRR for each problem, using the NPV and IRR functions in the Excel spreadsheet program. Provide a basic description of the answers for each problem.

Year 1 Project A Cash Flow Project B Cash Flow

0 -$72,000 -$64, 000

0 $28,000 $26,000

0 $32,500 $30,000

0 $31,000 $25,000

Reference no: EM131527764

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