Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: 6 7 Time 0 1 8 9 10 11 12 13 14 15 16 17 2 3 4 5 6 7 Expected Net Cash Flows Project A Project B ($375) ($575) ($300) $190 ($200) $190 ($100) $190 $600 $190 $600 $190 $926 $190 ($200) $0 4% 33 b. Construct NPV profiles for Projects A and B. 34 35 Before we can graph the NPV profiles for these projects, we must create a data table of project NPVs relative to differing 36 costs of capital. 37 38 Project A Project B 39 40 0% 41 2% 42 43 6% Project A 44 8% 45 10% 46 12% 47 14% 48 16% Project B 49 18% 50 20% 51 22% 52 24% 53 26% 54 28% 55 30% 57 c. What is each project's IRR? 58 59 We find the internal rate of return with Excel's IRR function: 60 61 IRR A = projects' IRRs. 62 IRR B