6. Given the following cash flows for a capital project and a required rate of return of 8 percent, calculate the NPV and IRR. Year 0 1 2 3 4 5 Cash flow ($) -50,000 15,000 15,000 20,000 10,000 5,000 NPV IRR a $1,905 10.9% b. $1,905 26.0% c. $3,379 10.9% d. $3,379 26.0% 7. Projects 1 and 2 have similar initial outlays, although the patterns of future cash flows are different. The cash flows, along with the NPV and IRR for the two projects, are shown in the following table. For both projects, the required rate of return is 10 percent. The two projects are mutually exclusive. What is the appropriate investment decision? Cash Flows NPV IRR Year o 1 2 3 4 Project 1: -50 20 20 20 20 $13.40 21.86% Project 2: -50 0 0 0 100 $18.30 18.92% a. Invest in Project 1 because it has the higher IRR b. Invest in Project 2 because it has the higher NPV C. Invest half in each project d. Invest in both projects