Answer question 10-6

10-6. (NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $50,000 and the initial cash outlay associated with project B is $70,000. The required rate of return on both projects is 12 percent. The expected annual free cash inflows from each project are as follows: Initial outlay inflow year 1 Inflow year 2 Inflow year 3 inflow year 4 Inflow year 5 Inflow year 6 PROJECT A -$50,000 12,000 12,000 12,000 12,000 12,000 12,000 PROJECT B -$70,000 13,000 13,000 13,000 13,000 13,000 13,000 Calculate the NPV, PL, and IRR for each project and indicate if the project should be accepted. 10-7. (Payback period calculations Ynu ara