n$4$

You've estimated the following cash flows $($in $$)$ for two mutually exclusive

projects:

The required return for both projects is $8\%.$

$*$Part $1$

What is the IRR for project A$?$

Attempt $1/4$ for $10$ pts$.$

$*$Part $2$

What is the IRR for project B$?$

Attempt $1/3$ for $10$ pts$.$

$*$Part $3$

Which project seems better according to the IRR method?

Project A

Project B

Attempt $1/4$ for $10$ pts$.$

$*$Part $4$

What is the NPV for project A$?$

Attempt $1/4$ for $10$ pts$.$

$*$Part $5$

What is the NPV for project B$?$

Attempt $1/3$ for $10$ pts$.$

$*$Part $6$

Which project seems better according to the NPV method?

Project A

Project B

Attempt $1/3$ for $10$ pts$.$

$*$Part $7$

Compare the answers to parts $3$ and $6.$ If both projects are mutually exclusive, which one should you accept?

Project A

Project B