Calculate the NPV and IRR of each project. If the NPV and IRR rankings disagree, explain the source of the conflict. Which project should Nymeria choose? Why?
You have been hired to advise an investment management firm. The firm currently has assets held as cash worth £100 million and liabilities that consist of payments of £15 million in 2 years, £20 million in 3 years, £30 million in 4 years, and £50 million in 5 years. The term structure is flat at 4% per year.
What is the present value of the liabilities? [2 marks]
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