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Given that the cost of capital is 14%: Given the following two mutually exclusive projects: Project CF0 CF1 CF2 CF3 CF4 A -8,000 2,500 3,150

Given that the cost of capital is 14%:

Given the following two mutually exclusive projects:

Project

CF0

CF1

CF2

CF3

CF4

A

-8,000

2,500

3,150

3,000

3,000

B

-10,000

3,500

3,000

4,000

4,000

Calculate the IRR and the NPV of each project and recommend which project should be accepted?

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