NVP AND IRR

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Mira234

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Hi for my uni paper I am currently considering 2 different projects and I am using the Net Present Value and Internal Rate of Return Method to evaluate both projects. I have been spending the last few hours on this and can not seem to find my mistake. For the Net Present Value I am receiving a negative result for Company A and a positive result for company B. However, when utilising the IRR approach I get negative results for both Project A and B. I have attached the Project Stats for A and B as well as my workings in Excel. I really really appreciate anyone's help or advise! Thanks a lot for your time
 

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First of all, you do know, do you not, that the net present value method and the internal rate of return method may give opposite answers. Each is based on certain assumptions that differ between the two methods and that may not, in either case, obtain in reality.

Second, neither problem is well worded: what happens after year 7.

Third, where do your discount factors come from? How do you get 0.998 as a discount factor at a 7% rate?
 
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