130 8. (a) Let the capital budget be 5000 and the following projects are available: Initial cost IRR PV of future cash Project A 4000 4600 2000 2400 2000 2200 D 1000 1130 E | 1000 20 | 1120 1000 1090 Which projects should be taken? 20 (b) Consider the following projects: Project A: initial cost=100,000 and annual cash flow=24,000 for 6 years. Project B: initial cost=60,000 and annual cash flow=26,000 for 3 years. The cost of capital is 8% for both projects. What should be the decision if the two projects are (i) independent. (ii) mutually exclusive