3.Your division is considering two investment projects, each of which requires an upfront expenditure of $15 million. You estimate that the investments will produce the following net cash flows:

Year

Project A

Project B

1

$5,100,000

$19,000,000

2

11,000,000

9,000,000

3

21,000,000

5,500,000

a.What are the two projects' net present values, assuming the cost of capital is 5%? 10%? 15%?

b.What are the two projects' IRRs at these same costs of capital?

3. Your division is considering two investment projects, each of which requires an upfront expenditure of $15 million. You estimate that the investments will produce the following net cash ows: Year Project A Project B 1 $5,100,000 $19,000,000 Z 1 1,000,000 9,000,000 3 21,000,000 5,500,000 a. What are the two projects' net present values, assuming the cost of capital is 5%? 10%? 15%? b. What are the two projects' IRRs at these same costs of capital