Question 9

Consider the following cash flows for Project K and Project L:

Year	Project K	Project L
0	-78000	-120000
1	24000	27000
2	28000	30000
3	32000	35000
4	36000	40000
5	40000	45000
6	45000	50000

Requirements: a. Calculate the NPV for both projects with a discount rate of 9%. b. Determine the IRR for each project. c. Calculate the payback period for both projects. d. Recommend which project(s) should be selected if they are independent. e. Recommend which project should be selected if they are mutually exclusive.