5. Capital Budgeting: This question has five parts. Here you have to find Net Present Value (NPV) and Internal Rate of Return (IRR) for two projects. (Show all work.) (10 points)

Expected Net Cash Flows
Year	Project A	Project B
0	($5,000)	($5,000)
1	$700	$750
2	$1,000	$1,250
3	$3,250	$3,000
4	$3,500	$3,250

5a. What is the IRR of Project A?

5b. What is the IRR of Project B?

5c. If the opportunity cost of capital is 10%, what is the NPV of Project A (round to the nearest penny)?

5d. If the opportunity cost of capital is 10%, what is the NPV of Project A(round to the nearest penny)?

5e. If you have a choice between Project A and Project B, which one would you choose and why?