Project A: Projected Revenue Project B: Projected Cash flows 0 100,000 15,000 25,000 25,000 24,000 19,000 19,000 13,000 19,000 Initial investment 100,000 100,000 100,000 50,000 90,000 4 4 6 Cogs for year 1 through 4 is 25% of revenues Selling, General Admin expenses are 15% of revenues No interest expense Corporate tax rate is 35% 8 Round your final answers to two decimal points. Do not round your numbers during calculations.) If the company's required rate of return is 10%, what are the NPV and IRR of the two projects? Based on the question 1, which project will you choose? If the required return for project B is actually 15% due to higher risk then which project would you choose based on RR and NPV? Matterhorn Co. came to visit you and offered an annual compounding zero-coupon bond to finance these projects. The terms of the bond are you receive $100,000 today but you will have to repay this at the end of the project with $175,000. if the YTM is 10%, would you accept this bond for project A? Project B