Intro You've estimated the following cash flows (in $) for two mutually exclusive projects: Year Project A Project B 0 -5,500 -8,250 1 1,325 1,325 2 2,148 2,148 3 4,027 8,025 The required return for both projects is 8%.

Part 1 What is the IRR for Project A?

Part 2 What is the IRR for Project B?

Part 3 Which project seems better according to the IRR method? Project A or Project B

Part 4 What is the NPV for project A?

Part 5 What is the NPV for Project B?

Part 6 Which project seems better according to the NPV method? Project B or Project A

Part 7 Compare the answers to parts 3 and 6. If both projects are mutually exclusive, which one should you accept? Project B or Project A