NPV and IRR analysis of projects--Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 12%, has estimated its cash flows as shown in the following table:

Calculate the NPV of each project, and assess its acceptability.

Calculate the IRR for each project, and assess its acceptability.

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

a1- According to the NPV method, is project A acceptable?(Select the best answer below.) Yes or No a2- The NPV of project B is $_______(Round to the nearest cent.)

a3- Is project B acceptable on the basis of NPV?(Select the best answer below.)

Yes or No

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

b1- Is project A acceptable on the basis of IRR?(Select the best answer below.)

Yes or No

b2- The IRR of project B is _______ (Round to two decimal places.)

b3- Is project B acceptable on the basis of IRR?(Select the best answer below.) Yes or No please write answers clearly and properly , thanks

U Project A $120,000 Project B $94,000 Initial investment (CF) Year (t) 1 2 3 4 5 Cash inflows (CF) $20,000 $55,000 $25,000 $40,000 $40,000 $35,000 $55,000 $5,000 $50,000 $10,000