Given: Your firm is deciding to invest in two different projects. Both have an initial cost of $15million. Estimated future cash flows are as follows:

A. Calculate both projects NPV, assuming the cost of capital is 5%, then 10%, then 15%.

B. What are the projects IRRs at the three costs of capital?

Year123ProjectA$5,000,00010,000,00020,000,000ProjectB$20,000,00010,000,0006,000,000