NPV

Your division is considering two investment projects, each of which requires an up-front expenditure of $19 million. You estimate that the investments will produce the following net cash flows:

Project A Project B

Year 1 $ 5,000,000 $20,000,000

Year 2 10,000,000 10,000,000

Year 3 20,000,000 7,000,000

What are the two projects' net present values, assuming the cost of capital is 5%? Round your answers to the nearest dollar. Project A $ Project B $

What are the two projects' net present values, assuming the cost of capital is 10%? Round your answers to the nearest dollar. Project A $ Project B $

What are the two projects' net present values, assuming the cost of capital is 15%? Round your answers to the nearest dollar. Project A $ Project B $

What are the two projects' IRRs at these same costs of capital? Round your answers to two decimal places. Project A % Project B %