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1. Two projects being considered are mutually exclusive and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow

1. Two projects being considered are mutually exclusive and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$50,000 -$ 50,000 1 15,990 0 2 15,990 0 15,990 0 4 15,990 0 5 15,990 100,560 The discount rate is 10% A. (5 pts) Calculate payback period for both projects. B. (5 pts) Calculate the discounted payback period for project A. C. (5 pts)Calculate NPV and IRR for project A.

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