P$10-23$ NPV$,$ IRR, and NPV profiles Thomas Company is considering two mutually exclu$-$

sive projects. The firm, which has a $12\%$ cost of capital, has estimated its cash flows

as shown in the following table.

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

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

c$.$ Draw the NPV profiles for boch projects on the same set of axes.

d$.$ Evaluate and discuss the rankings of the two projects on the basis of your find$-$

ings in parts $a,b,$ and $c.$

e$.$ Explain your findings in part din light of the pattern of cash inflows associated

with each project.