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(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project A

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(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project A $130,000 Project B $96,000 Initial investment (CF) Year (t) WN - 1 2 Cash inflows (CF) $35,000 $50,000 $30,000 $30,000 $35,000 $15,000 $50,000 $25,000 $50,000 $20,000 3 4 5 NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 11%, has estimated its cash flows as shown in the following table: a. Calculate the NPV of each project, and assess its acceptability. b. Calculate the IRR for each project, and assess its acceptability. a. The NPV of project A is $ (Round to the nearest cent.)

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