Q. Consider the following data for Projects A and B.
Project A Project B
PV factor 5% PV factor of 8%
Cash flows Year Cash flows Year
–500 0 –1000 0
86 1 220 1
150 2 300 2
200 3 300 3
200 4 300 4
Compute IRR, NPV and payback for both projects. Show all calculations.