9-6B. (Net present value, profitability index, and internal rate ofreturn calculations) You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $45,000, whereas the initial cash outlay associated with project B is $70,000. The required rate of return on both projects is 12 percent. The expected annual free cash inflows from each project are as follows:

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

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YEAR PROJECT A PROJECT B YEAR PROJECT A PROJECT B 0 -$45,000 -$70,000 1 12,000 14,000 2 12,000 14,000 456 $12,000 $14,000 12,000 14,000 12,000 14,000 3 12,000 14,000