PLEASE EXPLAIN EACH FORMULA TO USE FOR THE NPV AND IRR AND WHAT EXACTLY GOES INTO THEM. I HAVE TO DO, A SIMILAR
SET OF QUESTIONS AND WANT TO UNDERSTAND THEM.
A firm has two independent projects shown below. Use the capital budgeting techniques (NPV, IRR, PI, and Payback period) to determine whether the firm should invest in either of those projects, both or none of them. The cost of capital is 15%. Also, if the firm has limited resources, which one should be funded. Use the functions NPV and IRR to work on excel.