between NPV and IRR. (Hint: The key factor here is the discount rate used.) In this memo, explain how you would analyze projects differently if they had unequal projected years (i.e., if Corporation A had a 5-year projection and Corporation B had a 7-year projection)

Please find below a detailed comparative analysis of both corporations. Based on this analysis, I would recommend acquiring corporation B as it mainly has a higher net present value than corporation A.

| | |Corporation A |Corporation B |

|c |NPV |$20,979.20 |$48,035.14 |

|d |IRR |13.05% |16.94% |

|e |Payback Period |3.64 years |3.3 years |

|f |PI |1.08 |1.19 |

|g |Discounted Payback Period |4.6 years |4.1 years |

|h |MIRR |11.79% |13.94% |

Net Present Value (NPV) is defined as the difference between an investment’s market value and its cost. The rule here is that we accept projects with a net present value greater than zero, and decline the ones with a net present value that is less than zero. The higher the net present value, the more desirable the investment is. Based on that, Corporation B is preferable to Corporation A as it has a higher net present value.

Internal Rate of Return (IRR) is defined as the rate of return that...