What has caused the ranking conflict

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Caledonia is considering two additional mutually exclusive projects. The cash flows associated with these projects are as follows:

Year Project A Project B
0 -$100,000 -$100,000
1 $32,000 0
2 0 0
3 0 0
4 0 0
5 0 $200,000

The required rate of return for these projects is 11 percent.

A. What is each projects payback period? B. What is each projects net present value? C.What is each projects internal rate of return? D. What has caused the ranking conflict? E. Which project should be accepted and why?

 

Reference no: EM13299485

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