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5. There are two mutually exclusive projects. Project Arequires $480,000 initial investment and is expected to provide $120,000 incremental net cash inflows for 5 years.

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5. There are two mutually exclusive projects. Project Arequires $480,000 initial investment and is expected to provide $120,000 incremental net cash inflows for 5 years. Project B requires $950,000 initial investment and is expected to provide $200,000 incremental net cash inflows for 5 years. Which project should you accept according to IRR method if your cost of capital is 5%? Project A Year Cash Flows Project B Year Cash Flows 0 0 1 NA N 3 3 4 4 5 5 IRR IRR Choose

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