Back f Problem 10 Workspace A corporation is attempting to choose the better of two mutually exclusive investment projects (A or B). The relevant cash flows for the projects are shown in the table to the right. Initial Investment Cost of Capital Investment Project A $325,000 12% Investment Project B $400,000 The firm's cost of capital is 12%. a) Calculate the IRR b) Which project is preferred? 12% Year (yr. start Cash flows (yr.end convention) convention) 1 $100,000 $140,000 2 $120,000 $120,000 3 $150,000 $95,000 4 $190,000 $70,000 5 $250,000 SO