17. ( 15 Points, show your work): Starbucks is considering two mutually exclusive projects

Year Cash Flows ACash Flow B

0-$200,000-$200,000

1$61,2500

2$61,2500

3$61,2500

4$61,2500

5$61,250$400,000

The required rate of return on these projects is 12 percent.

a)What are each project's payback period, NPV and IRR

Project A: ___________ ________________,________________.

Payback NPVIRR

Project B : ___________,_____________,__________________.

PaybackNPVIRR

b)Which project do you prefer and why?