Project A has a cost of $15,000, and provides $4,000 first year cash-flow, and the cash flow increases by $1,000 annually until year 5 Project B costs -$15,000, and provides $13,000 first year cash-flow, followed by four years of $2,000 per year. Assume that projects A and B are mutually exclusive and the discount rate is 10% CF0 CF1 CF2 CF3 CF 14 CF15 Project A $15,000 $4,000 $5,000 56,000 $7,000 $8.000 Project B -$15,000 $13,000 $2,000 $2.000 $2.000 $2000 Question 12 (1 point) What are the NPV for each project? Based on NPV, which project will you accept and why? ONPV(A) - $2,024,94 NPV(B) $2,581.57, Accept B NPV(A) = $6.125.94 > NPV(B) 52.581.57. Accept A NPV(A) = $7,024,94 > NPV(B) $2,581,57. Accept A Question 13 (1 point) What are the IRRs for each project? Lased on IRR, which project will you accept and why? IRR(A) - 24.89% >IRR(B) = 20.72%>10%. Accept A IRR(A) - 22.19% > IRR(B) -21.72%>10%, Accept A IRR(A) = 20.52% 10%, Accept B IRRIA) - 23.89% >IRR(B) - 20.72%>10%. Accept A Question 14 (1 point) Based on payback period, which project will you accept and why if the cutoff payback is 3 years? Accept project A because PB(A) - 3 years cutoff payback Accept project A because PB(A) = 3 years > cutoff payback