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17. (15 points, show your work): Starbucks is considering two mutually exclusive projects: Year 0 2 3 4 5 Cash Flow A -$200,000 61,250 61,250

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17. (15 points, show your work): Starbucks is considering two mutually exclusive projects: Year 0 2 3 4 5 Cash Flow A -$200,000 61,250 61,250 61,250 61,250 61,250 Cash Flow B -$200,000 0 0 0 0 400,000 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 NPV IRR Project B: Payback NPV IRR b) Which project do you prefer and why

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