1.

The following are the cash flows of two projects:

Year		Project A					Project B
0			$	290				$	290
1				170					190
2				170					190
3				170					190
4				170

What are the internal rates of return on projects A and B? (Enter your answers as a percent rounded to 2 decimal places.)

Project	IRR
A	%
B	%

2.

A factory costs $687,860. You forecast that it will produce cash inflows of $484,067 in year 1, $115,000 in year 2, and $180,000 in year 3. The discount rate is 12.00%.

a.	Calculate the PV of cash inflows. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value

$

b.	Should the company invest in the factor?
	(Click to select)The firm should not investThe firm should invest