Managerial Finance (MBA 5323) Net Present Value and Internal Rate of Return Homework # 20, 10 points Consider the following mutually exclusive projects. 2. 3. 4. Year 0 1 5. 2 3 5 6 I Cash flows for Project REC -1000 500 1400 The appropriate WACC for both projects is 5% per year. 1. Using the cash flows as given above, what is the Net Present Value (NPV) of Project REC? What is its Internal Rate of Return (IRR)? due 5:45 p.m., Thursday 11/10/22 Cash flows for Project XYZ -1000 100 300 400 600 350 125 Using the cash flows as given above, what is the Net Present Value (NPV) of Project XYZ? What is its Internal Rate of Return (IRR)? Using the Replacement Chain method, which of the two mutually exclusive projects should be chosen? Why? Using the Equivalent Annual Annuity (EAA) method, which of the two mutually exclusive projects should be chosen? Why? Which project would you choose if they were independent? Why?