NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 10%, 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 S. (Round to the nearest cent.) According to the NPV method, is project A acceptable? (Select the best answer below.) 0 Yes The NPV of project Bis S. (Round to the nearest cent.) Is project B acceptable on the basis of NPV? (Select the best answer below.) 0 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.) a 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 Project A $150,000 Project B $95,000 Initial investment (CFO) Year (t) 1 2 Cash inflows (CF) $35,000 $50,000 $35,000 $25,000 $50,000 $25,000 $55,000 $25,000 $55,000 $20,000 3 4 5