Corporate Finance: calculate the Internal rate of return of (i) Project 1, which has an initial cost of £800,000 and an annual cash inflow of £117,200 for 20 years; and (ii) Project 2, which has an initial cost of £200,000 and an annual cash inflow of £48,000 for 8 years.all the cashflows are in annuity.

Corporate Finance 1) Calculate the Net Present Value (NPV) for each project State the NPV decision rule Based on the NPV decision rule, select the projects that should be financed with the £1,320,000 budget Calculate the overall NPV for the selected projects in part b) (Total: 25 marks) 2) Calculate the Profitability Index (PI) for … Read more