(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

$60,000,

and the initial cash outlay associated with project B is

$80,000.

The required rate of return on both projects is

9

percent. The expected annual free cash inflows from each project are in the popup window:

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. Calculate the

NPV,

PI,

and IRR for each project and indicate if the project should be accepted.

a. What is the NPV of project A?

$nothing

(Round to the nearest cent.)

Enter your answer in the answer box and then click Check Answer.

8

parts remaining

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Check Answer

Data Table

(Click on the following icon

in order to copy its contents into a spreadsheet.)

	PROJECT A		PROJECT B
Initial Outlay	$60,000		$80,000
Inflow year 1	12,000		13,000
Inflow year 2	12,000		13,000
Inflow year 3	12,000		13,000
Inflow year 4	12,000		13,000
Inflow year 5	12,000		13,000
Inflow year 6	12,000		13,000