6.14 You are considering two projects with the fol- lowing certain cash flows: Year 0 Year 1 -$100 $170 Project A Project B -$200 $300 a. Calculate each project's NPV and IRR. Assume a discount rate of 5% and that the projects are mutu- ally exclusive. Which should you accept? In your answers to 6.14b and 6.14c assume you can borrow and lend at 5%. Show your financial trans- action with the bank. b. Suppose you wish to consume only at date : = 0. Which project would you choose? Why? c. Suppose you wish to consume only at date = = 1. Which project would you choose? Why? d. Use your answers to 6.14b and 6.14c to defend the NPV rule. 6.14 You are considering two projects with the fol- lowing certain cash flows: Year 0 Year 1 -$100 $170 Project A Project B -$200 $300 a. Calculate each project's NPV and IRR. Assume a discount rate of 5% and that the projects are mutu- ally exclusive. Which should you accept? In your answers to 6.14b and 6.14c assume you can borrow and lend at 5%. Show your financial trans- action with the bank. b. Suppose you wish to consume only at date : = 0. Which project would you choose? Why? c. Suppose you wish to consume only at date = = 1. Which project would you choose? Why? d. Use your answers to 6.14b and 6.14c to defend the NPV rule