15 There are two possible investment projects a firm is facing. The cash flows are given as follows: Initial Investment 100 million 30 million 50 million 30 million-10 million 90 million Project Year 1 Year 2 Year 3 Year 4 15 million 40 million 20 million 20 million 1) 2) 3) 4) What is Net Present Value for the project A and B, respectively? Assuming the hurdle rate (cost of capital) to be 6.71%. What is the Internal Rate of Return of the Project A and B, respectively? Based on your calculation for NPV and IRR, will you accept the projects? If you are only allowed to accept one of the projects, which one will you undertake? Why