CH. 9 WORKSHEET NPV and Other Investment Criteria For Problems 1-4, use a 5% discount rate and the following cash flows for projects A and B.: A: (-$2000, $500, $600, $700, $800) B: (-$2000, $950, $850, $400, $300) 1. Calculate the payback period for projects A and B. 2. Calculate the internal rate of return for projects A and B. 3. If A and B are mutually exclusive and the required rate of return is 5%, which should be accepted? 4. If the discount rate is 12%, and A and B are mutually exclusive, which project should be accepted? 5. You can borrow $8,000, to be repaid in installments of $2,200 at the end of each of the next 5 years. Use the IRR to determine whether this loan is preferable to borrowing at the rate of 11.5%. 6. A firm is considering the following mutually exclusive investment projects. Project A requires an initial outlay of $500 and will return $120 per year for the next seven years. Project B requires an initial outlay of $5,000 and will return $1,350 per year for the next five years. The required rate of return is 10%. Use the net present value criterion to determine which investment is preferable. 7. Calculate the internal rate of return and PI for each of the projects described in the previous