clearly wrote the solution with all steps dont use excel if answer is not clear steps i will give thumbs down and negative review because i dont have more question to upload already wasted two question in same got wrong answer . if u know answer then only answer.
PARTI: Read the following, understand, interpret and solve the problems.
1. Suppose your firm is evaluating three potential new investments (all with 3-year project lives). You calculate for these projects: X, Y and Z, have the NPV and IRR figures given below:
Project X: NPV = $8,000 IRR = 8%
Project Y: NPV = $6,500 IRR = 15%
Project Z: NPV = – $500 IRR = 20%
A) Justify which project(s) would be accepted if they were independent? (5 marks
b) Justify which project(s) would be accepted if they were mutually exclusive? (5 marks)
2. Evaluate three reasons why IRR is not the best technique for evaluating proposed new projects.(5 marks)