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Problem 19 Intro You've estimated the following cash flows (in %) for two mutually exclusive projects: Year Project A Project B 0 -5,200 -7,800 1

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Problem 19 Intro You've estimated the following cash flows (in %) for two mutually exclusive projects: Year Project A Project B 0 -5,200 -7,800 1 1,325 1,325 2 2,148 2,148 3 3,671 7.260 The required return for both projects is 8% JE Attempt 1/10 for 10 pts. Part 1 What is the IRR for project A? 3+ decimals Submit JB Attempt 1/10 for 10 pts. Part 2 What is the IRR for project B? 3+ decimals Submit Part 3 IB- Attempt 1/10 for 10 pts. Which project seems better according to the IRR method? O Project B Project A Submit BB Attempt 1/10 for 10 pts. Part 4 What is the NPV for project A? 0+ decimals Submit B Attempt 1/10 for 10 pts. Part 5 What is the NPV for project B? 0+ decimals Submit 47 Part 6 E- Attempt 1/10 for 10 pts Which project seems better according to the NPV method? O Project B o Project A Submit Part 7 E- Attempt 1/10 for 10 pts. Compare the answers to parts 3 and 6. If both projects are mutually exclusive, which one should you accept? Project B Project A Submit

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