NPV and IRR analysis of projectsThomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 9%, has estimated its cash flows as shown in the following table:

	Project A	Project B
Initial investment (CF 0CF0)	$150,000	$104,000
Year (t)	Cash inflows (CF Subscript tCFt)
1	$30,000	$50,000
2	$35,000	$40,000
3	$40,000	$35,000
4	$55,000	$20,000
5	$70,000	$15,000

a.The NPV of project A is $_____. (Round to the nearest cent.)

According to the NPV method, is project A acceptable?(Select the best answer below.)

A. No

B. Yes

The NPV of project B is $______. (Round to the nearest cent.)

Is project B acceptable on the basis of NPV?(Select the best answer below.)

A. No

B. Yes

b. The IRR of project A is _____%. (Round to two decimal places.)

Is project A acceptable on the basis of IRR?(Select the best answer below.)

A. Yes

B. No

The IRR of project B is _____%. (Round to two decimal places.)

Is project B acceptable on the basis of IRR?(Select the best answer below.)

A. No

B. Yes