(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 $40,000,and the initial cash outlay associated with project B is $60,000.

The required rate of return on both projects is 9percent. The expected annual free cash inflows from each project are in the attachment

Calculate the NPV,PI,and IRR for each project and indicate if the project should be accepted.

Initial Outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 Inflow year 6 PROJECT A PROJECT B -$40,000 -$60,000 12000 13000 12000 13000 12000 13000 12000 13000 12000 13000 12000 13000