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4. Decision Rules. (15 points) Hoogecow Inc. is considering two mutually exclusive projects with the cashflows listed below. Project A Project B Time 0 -10,000

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4. Decision Rules. (15 points) Hoogecow Inc. is considering two mutually exclusive projects with the cashflows listed below. Project A Project B Time 0 -10,000 -20,000 Time 1 6,000 10,000 Time 2 6,000 10,000 Time 3 6,000 10,000 a. Calculate the NPV of each project given a cost of capital of 15%. Which project would you select? b. Calculate the IRR for each project. Which project would you select? c. Calculate the Payback period for each project. Which project pays back the investment sooner

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