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: E : 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.) Yes No 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.) No Yes Project A $120,000 Project B $71,000 Initial investment (CF,) Cash inflows (CF;) Year (t) $25,000 $20,000 $40,000 $55,000 $50,000 $40,000 $25,000 $20,000 $15,000 $5,000 1 2 3 4 5