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Intro You've estimated the following cash flows (in $) for two mutually exclusive projects: Year Project A Project B 0 -5,600 -8,400 1 1,325 1,325

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Intro You've estimated the following cash flows (in $) for two mutually exclusive projects: Year Project A Project B 0 -5,600 -8,400 1 1,325 1,325 2 2,148 2,148 3 4,210 8,110 The required return for both projects is 8%. IB Attempt 1/3 for 10 pts. Part 1 What is the IRR for project A? 3+ decimals Submit FB Attempt 1/3 for 10 pts. Part 2 What is the IRR for project B? 3+ decimals Submit Part 3 IB Attempt 2/3 for 10 pts. Which project seems better according to the IRR method? Project AV Project B Correct Project A's IRR of 0.145 is greater than project B's IRR of 0.134. Project A is thus better. Since the IRR is also greater than the required return, the company will add value by pursuing project A. IB Attempt 1/3 for 10 pts. Part 4 What is the NPV for project A? 0+ decimals Submit IB Attempt 1/3 for 10 pts. Part 5 What is the NPV for project B? 0+ decimals Submit

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