hi

I did calculation for NPV and IRR for both Project A and B from questions below, but I think the answers are not correct need your clarification. I provided a screen shot of questions below.

Project A and Project B

Project A initial cash expenditure is $400,0000 with annual expected cash inflow of $126,000.

Project B Initial cash expenditure is $1160,000 with annual expected cash inflow of $52,800

Both investments are expected to provide each cash flow benefits for next four years and company desired rate of return is 8%. Need to know the NPV and IRR for project A and B and also need clarifitcaiton which project to choose for NPV and IRR

Problem 10-19A Using net present value and internal rate of return to evaluate investment opportunities Dwight Donovan, the president of Donovan Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of four years and no salvage value. Project B supports a training program that will improve the skills of employees Page 472 operating the current equipment. Initial cash expenditures for Project A are $400,000 and for Project B are $160,000. The annual expected cash inflows are $126,000 for Project A and $52,800 for Project B. Both investments are expected to provide cash flow benefits for the next four years. Donovan Enterprises' desired rate of return is 8 percent