3 Two Mutually Exclusive projects are as follows 17 Annual cash flows Year 0 Year 1 Year 2 Year 3 Year 4 A 127 500) 12.400 12,300 92200 -5 100 $ $ S S S a S S S 5 $ B 127 500) 1 300 9.900 15.200 10.800 Required return A 9% Required 1. Calculate NPV and IRR for Projects A and B 2. Which project will you accept and why? 3 Two Mutually Exclusive projects are as follows 17 Annual cash flows Year 0 Year 1 Year 2 Year 3 Year 4 A 127 500) 12.400 12,300 92200 -5 100 $ $ S S S a S S S 5 $ B 127 500) 1 300 9.900 15.200 10.800 Required return A 9% Required 1. Calculate NPV and IRR for Projects A and B 2. Which project will you accept and why