Can someone calculate this project, thanks Jekyll & Hyde Corp. is evaluating two

Question

Can someone calculate this project, thanks

Jekyll & Hyde Corp. is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows are given in the following table.

Calculate NPV and IRR of two projects. (Enter negative amounts using negative sign, e.g. -45.25. Round answer to 2 decimal places, e.g. 15.25 or 12.25%.)

Which project should be accepted?

Year Project 1 Project 2 0 -$1,271,319 -$1,150,711 1 271,600 332,850 2 339,290 332,850 3 453,195 332,850 4 478,400 332,850 5 685,875 332,850

Explanation / Answer

NPV project 1= -1271319+271600/1.15+339290/(1.15)^2+453195/(1.15)^3+478400/(1.15)^4+685875/(1.15)^5= 133917.81

NPV project 2= -1150711+332850/1.15+332850/(1.15)^2+......+332850/(1.15)^5= -34946.17

IRR of project 1= 18.74%

IRR of project 2= (-1150711,332850,5 year)= 13.71%

As, The NpV o project 1 is positive and of project 2 it is negative so, project 1 should be accepted.

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