Please show all work and/or formulas!

F 3 10 12 A B D E 1 CHAPTER 14: CAPITAL BUDGETING 2 Homework 4.6, Chapter 14 3 4 Healthy Valley Medical Center is evaluating two investment 5 projects, each of which requires an up-front expenditure of $1.25 6 million. The projects are expected to produce the following net 7 cash inflows: 8 9 Year Project A Project B 1 600,000 800,000 11 2 1,250,000 400,000 3 1,500,000 300,000 13 14 a. What is each project's IRR? 15 16 17 18 19 20 21 22 23 b. What is each project's NPV if the cost of capital is 10%? 24 25 26 27 28