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PLEASE CIRCLE, CLEARLY AND UNAMBIGUOUSLY, THE SINGLE DLSU The following cash flows should be used to complete Problems 1 - 4 Edison Electric has two

PLEASE CIRCLE, CLEARLY AND UNAMBIGUOUSLY, THE SINGLE DLSU
The following cash flows should be used to complete Problems 1-4
Edison Electric has two projects that are mutually exclusive and have the following projected cash flows:
Please compute the NPV and IRR for each project. Investors demand a 14 percent rate of return on their invesume in, I.c.,'c
Edison Electric's cost of capital, rc, equals 14 percent, what is the Net Present Value (NPV) of Project A?
A. $288,204
B. $149,750
C. $105,921
CoC
D. $88,969
E. $45,364
What is the Internal Rate of Return (IRR) of Project A?
A.32.7 percent
B.28 percent exactly
C.21.2 percent
D.24 percent exactly
E. Less than 1 percent
Edison Electric's cost of capital, rc, equals 14 percent, what is the Net Present Value (NPV) of Project B?
A. $182,760
B. $139,340
C. $122,100
D.,-$32,711
E.-$17,232
What is the Internal Rate of Return (IRR) of Project B?
A. Exactly 18 percent
B. Just under 16 percent
C. Just over 12 percent
D. Just under 12 percent
E. Exactly 10 percent
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