NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 11%, 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 ve Data table - X (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) PI Project A $130,000 Project B $67 000 Initial investment (CF) Year (0) 1 2 3 4 5 Cash inflows (CF) $15.000 $40.000 $25.000 $35.000 $45.000 $15.000 $55.000 $5,000 $60.000 $10.000 Hoje Ich wN cce 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) Yes No The NPV of project Bis 5 (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 Ais Round to two decimal places) Is project A acceptable on the basis of IRR? (Select the best answer below.) No No Yes b. The IRR of project Ais % (Round to two decimal places.) is project A acceptable on the basis of IRR? (Select the best answer below) O No Yes The IRR of project Bis % (Round to two decimal places.) is project B acceptable on the basis of IRR? (Select the best answer below) Yes