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(NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B. The initial cash outlay associated with project A
(NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $55,000, and the initial cash outlay associated with project B is $75,000. The required rate of return on both projects is 10 percent. The expected annual free cash inflows from each project are in the popup window: Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) PROJECT A PROJECT B Initial Outlay -$55,000 -$75,000 a. What is the NPV of project A? Inflow year 1 18,000 19,000 Inflow year 2 18,000 19,000 (Round to the nearest cent.) Inflow year 3 18,000 19,000 Inflow year 4 18,000 19,000 Inflow year 5 18,000 19,000 Inflow year 6 18,000 19,000 - X
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