Problem 10-17

Callaway Associates, Inc. is considering the following mutually exclusive projects. Callaway's Cost of capital is 10%.

Year	Project A	Project B
0	($80,000)	($80,000)
1	$44,000	$65,000
2	$34,000	$30,000
3	$14,000	$0
4	$14,000	$5,000

1. Calculate each project's NPV and IRR. Round the answers to two decimal places.

   	Project A	Project B
   NPV:	$	$
   IRR:	%	%

2. Which project should be undertaken?