Trudeau, inc. is considering project a and project b, which are two mutually exclusive projects with unequal lives. project a is an eight-year project that has an initial outlay or cost of $140,000. its future cash inflows for years 1 through 8 are the same at $36,500. project b is a six-year project that has an initial outlay or cost of $160,000. its future cash flows for year 1 through 6 are the same at 48,000. trudeau's discount rate (hurdle rate) is 13%.
a. find the net present value of project a and b. if trudeau has enough resources to invest both into project a and b separately, will he accept them?
b. calculate irr for project a and b, will he accept these projects based on irr method?

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan