NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 14%, has estimated its cash flows as shown in the following table: a. Calculate the NPV of each project, and assess its acceptability b. Calculate the IRR for each project, and assess its acceptability. 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.) No 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.) No 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.) No Yes 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.) Yes No \begin{tabular}{ccc} \hline & Project A & Project B \\ \cline { 2 - 3 } Initialinvestment(C0) & $130,000 & $68,000 \\ \hline Year (t) & \multicolumn{2}{c}{ Cash inflows (Ct)} \\ \hline 1 & $20,000 & $45,000 \\ 2 & $35,000 & $30,000 \\ 3 & $50,000 & $25,000 \\ 4 & $45,000 & $5,000 \\ 5 & $55,000 & $5,000 \\ \hline \end{tabular}