Given the cash flow stream of following mutually exclusive projects: Use an MARR of 13% :

Project A: Time 0 = -$500; Time 1 = $150; Time 2; $245; Time 3 = $320

Project B: Time 0 = -$800; Time 1 = $360; Time 2; $360; Time 3 = $360

Part A: IRRs of Project A and B are respectively:

17.76% and 16.65%

16.65% and 17.76%

17.55% and 18.23%

18.23% and 17.55%

Part B: NPW of Projects A and B are respectively:

a. $ 44.26 and $ 41.05

a. $ 41.05 and $ 44.26

a. $ 48.52 and $ 45.31

a. $ 45.31 and $ 48.52

Part C: Which project should you select? ( Hint: Perform further analysis or use logic and your answers from 4 and 5)

Project A

Project B

Both

None.