Intro You've estimated the following cash flows (in $) for two projects: A B 1 Year Project A -75 Project B -258 2 0 3 1 15 50 4 2 21 73 5 3 29 82 6 4 31 123 The required return is 7% for both projects. IB Attempt 1/5 for 5 pts. Part 1 What is the IRR for project A? 0.09426 Correct A B C D 1 Year Project A -75 Project B Formula -258 2 0 3 1 15 50 4 2 21 73 5 3 29 82 6 4 31 123 7 8 IRR 0.095 =IRR(B2:B6) 18 - Attempt 1/5 for 5 pts. Part 2 What is the IRR for project B? 0.08965 Correct . B D 1 Year Project A -75 Project B Formula -258 2 0 3 1 1 15 50 4 2 21 73 - | 5 29 82 6 4 31 123 7 8 IRR 0.095 0.09 =IRR(C2:06) 18 Attempt 1/5 for 5 pts. Part 3 What is the NPV of project A? 4.683 Correct B D 1 Year Project A Project B Formula -75 -258 2 0 3 1 15 50 4 2 21 73 5 3 29 82 6 4. 31 123 7 8 IRR 0.095 0.09 =IRR(C2:06) 9 Discount rate 0.07 10 NPV 4.683 =B2+NPV($B$9,B3:B6) 18 Attempt 1/5 for 5 pts. Part 4 What is the NPV of project B? 1+ decimals Submit Part 5 IB Attempt 1/1 for 5 pts. If the projects are mutually exclusive, which project should you choose? O Project A, based on the IRR O Project B, based on the IRR O Project B, based on the NPV O Project A, based on the NPV Submit Part 6 18 Attempt 1/1 for 5 pts. If the projects are independent, which project should you choose? O Project B, based on the NPV O Project A, based on the IRR Both A&B, based on NPV of both projects O Project B, based on the IRR Project A, based on the NPV Submit