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Probl-m 3. (25 points) You have two project opportunity (A and B). Their cost of capital is 10%. End-of-Year Cash Flows 0 1 2 Project

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Probl-m 3. (25 points) You have two project opportunity (A and B). Their cost of capital is 10%. End-of-Year Cash Flows 0 1 2 Project A Project B -$1,000 -$1,000 $1,150 $100 $100 $1,300 What are the projects' NPVS, IRRs? Which project would you select if the projects were mutually exclusive? Explain

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