Project A and Project B have a cost of $24,000,000 today. Project A will have cash flows of $10,000,000 per year for three years, while Project B will have cash flows of $15,000,000 the first year, $10,000,000 the second year, and $7,000,000 the third year.

Calculate the NPV and the IRR for Project A using a 12% cost of capital and show your work by using TWO of the following methods: (1) using the formula, (2) identifying all variables using the calculators function keys, (3) using the steps on the calculator to calculate NPV and IRR. Note it is an annuity since the cash flows are the same.

Calculate the NPV and the IRR for Project B using a 12% cost of capital and show your work by using TWO of the following methods: (1) using the formula, (2) identifying all variables using the calculators function keys, (3) using the steps on the calculator to calculate NPV and IRR. Note this project has different cash flows.

Should A, B, both A and B, or neither be accepted if the projects are independent. Circle your choice.

Should A, B, both A and B, or neither be accepted if the projects are mutually exclusive. Circle your choice