At the annual holiday party, ABC Airlines gives awards to employees to recognize examples of "going above and beyond" to serve customers. Almost all the employees attend. This is an example of .A. a story.
B. a symbol.
C. a ritual.
D. a ceremony.
E. an unobservable artifact

- Net present value of each project:

Project A:$37,193

Project B:$4,629

=> Project A should be chosen based on NPV approach as its NPV is higher.

- Internal rate of return of each project:

Project A: 20%

Project B: 12%

=>Project A should be chosen based on IRR approach as its IRR is higher

Explanation:

- Net present value calculation:

NPV for Project A: -111,000 + (37,116/0.08) x [1-1.08^(-5)] = $37,193

NPV for Project B: -43,000 + (11,929/0.08) x [1-1.08^(-5)] = $4,629.

- Internal rate of return approach;

IRR is the discount rate that bring NPV of project's cash flows to 0. Thus:

IRR for project A: -111,000 + (37,116/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 20%

IRR for project B: -43,000 + (11,929/IRR) x [1-(1+IRR)^(-5)] = 0 <=> IRR = 12%