• ABC Company wants to evaluate two proposed capital investments, A & B. Each project has a cost of $100,000 and the required rate of return for each project is 12%. The projects expected future cash flows are as follows:

Year	Project A	Project B
0	(100,000)	(100,000)
1	65,000	28,000
2	30,000	28,000
3	30,000	28,000
4	6,000	28,000
5	5,000	28,000

1. Calculate each projects NPV.
2. Which project or projects should be accepted if they are independent?
3. Which project should be accepted if they are mutually exclusive?