9-6A. (Net pnsent value, profitability index, and internal rate ofretum calculationi) You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $50,000 and the initial cash outlay associated with projectB is $70,000. The required rate ofreturn on both projeCts is 12 percent. The expected annual free cash flows from each project are as follows:

Calculate the NPv, PI, and IRR for each project and indicate if the project should be accepted.

Transcribed Image Text:

YEAR PROJECT A PROJECT B 0 -$50,000 -$70,000 1 12,000 13,000 2 12,000 13,000 3 12,000 13,000 4 12,000 13,000 5 12,000 13,000 6 12,000 13,000