Find the net present value of project

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Trudeau, Inc. is considering Project A and Project B, which are two mutually exclusive projects with unequal lives. Project A is an eight-year project that has an initial outlay or cost of $140,000. its future cash inflows for years 1 through 8 are the same at $36,500. Project B is a six-year project that has an initial outlay or cost of $160,000. its future cash flows for year 1 through 6 are the same at 48,000. Trudeau's discount rate (hurdle rate) is 13%.

a. Find the Net Present Value of Project A and B. if Trudeau has enough resources to invest both into project A and B separately, will he accept them?

b. Calculate IRR for Project A and B, will he accept these projects based on IRR method?

Reference no: EM131933666

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