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3. Consider the following cash flows of two mutually exclusive projects. Year 1 Project A 0 - 115,000 18,900 54,728 3 57,575 4 73,737 5

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3. Consider the following cash flows of two mutually exclusive projects. Year 1 Project A 0 - 115,000 18,900 54,728 3 57,575 4 73,737 5 85,868 93,992 The required rate of return for both projects is 12%. What is the IRR for A? (4 points) Project B -9,000 1,243 2,455 2,224 3,543 7,643 4,543 6 What is the IRR for B? (4 points) What is the NPV for A? (4 points) What is the NPV for B? (4 points) Based on your previous answers, which project will you finally choose? (4 points)

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