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1. what is the NPV and IRR for project A? 2. what is the NPV and IRR for project B? 3. If these projects are

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1. what is the NPV and IRR for project A?

2. what is the NPV and IRR for project B?

3. If these projects are mutually exclusive, identify which project(s) the firm should accept

Neither/ both A and B/ project A/ Project B

Your company is considering two projects with the following cash flows, and the appropriate discount rate is 8%: Project A Project B Time Cash Flow Cash Flow - 10,000 -1.000 2000 400 0 1 N 2 4000 400 3 6000 400

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