2. Time: Investment A: Investment B: Year 0 Year 1 $300,000 -$1.5 million -$1.3 million $500,000 Year 2 Year 3 Year 4 Year 5 $300,000 $300,000 $500,000 $500,000 $400,000 $300,000 $200,000 $100,000 Discount Rate 8% 7% An investor is considering the two investments shown above. Please calculate the NPV and IRR for both A and B. And what is the crossover point here?

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Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.