= 12673.5 oble to put Question 2 (Page 88) - Highflyer plc has two possible projects to consider. It cannot da do both - they are mutually exclusive. The cash flows are: Points in time (yearly intervals) Project A Project B 0 420,000 -100,000 1 150,000 75,000 150,000 75,000 150,000 150,000 NAVE 2. 3 0 4. annvily Linur 0 Highflyer's cost of capital is 12 per cent. Assume unlimited funds. These are the only cash flows associated with the projects. 13 a). Calculate the internal rate of return (IRR) for each project. (Try 15 & 16% for Project A and 31% & 32% for Project B) A.B. Calculate the nel present value (NPV) for each project. c). Compare and explain the results in (a) and (b) and indicate which project the company should undertake and why. 420