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Business, 05.11.2020 19:10 CadenClough13

Firm Zeta is evaluating 2 possible, mutually exclusive capital projects. Project A calls for replacing old servers with new, faster computers. Project B calls for expansion into a new market. One way to account for the different risk levels of these 2 projects is to: a. Run IRR and compare that for the 2 projects.
b. Assign Project A a 5% discount rate, assign project B a 10% rate, and and compare their NPV's.
c. Assign the same discount rates, but different probabilities to the 2 projects.
d. Assign Project A a 10% discount rate, assign project B a 5% rate, and and compare their NPV's

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