10. Chll Investment Decision Criteria HW2 Question 1 CWD Inc., has two projects offering Project A and Project B. They are mutually exclusive. Both projects are mutually exclusive and have equal risk and IRR. The firm want the return at discount rate is 10%. The following table are expected cash flow. 500 Project Project Year Als) BIS) (1165) 450 450 500 600 450 1,390 1.1 Calculate project A's the internal rate of return (IRR). Use formula of Time Value of Money to illustrate. 1.2 Calculate Project B's the initial investment (10). Use formula of Time Value of Money to illustrate 1.3 Calculate payback period of both projects. 1.4 Calculate NPV of both projects. Use formula of Time Value of Money to illustrate. 1.5 Which project should be selected? Why? 1.6 If payback criteria are cutoff at 3 years, which project should be selected? 1.7 Give three weak points of payback criteria