Inatech Is Contemplating Two Different Projects and Decides to Perform

question 48

Essay

Inatech is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative.Project A and B have the cash flows as shown and Inatech uses a required rate of return of 8%.Compute the internal rate of return for both projects to determine which is worth of funding.
$$\begin{array} { | l | l | l |} \hline \text { Year } & \text { A } & \mathbf { B } \\\hline 0 & - \$ 500,000 & -\$ 400,000 \\\hline 1 & \$ 260,000 & \$ 200,000 \\\hline 2 & \$ 170,000 & \$ 100,000 \\\hline 3 & \$ 125,000 & \$ 100,000 \\\hline 4 & \$ 75,000 & \$ 50,000 \\\hline 5 & \$ 25,000 & \$ 25,000 \\\hline\end{array}$$

---

Definitions:

Mate Selection

The process by which individuals choose a partner with whom to form a reproductive relationship.

Mate Selection

The process by which individuals choose partners with whom to form a romantic relationship or marriage, influenced by various personal, cultural, and sociobiological factors.

Opposite-sex Mate

An individual of the other sex selected as a partner for romantic or reproductive purposes.

Coping Resources

Various strategies, skills, and supports available to an individual to manage stress, adversity, or challenges in life effectively.