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( Related to Checkpoint 1 1 . 1 , Checkpoint 1 1 . 3 , and Checkpoint 1 1 . 4 ) ( Net present

(Related to Checkpoint 11.1, Checkpoint 11.3, and Checkpoint 11.4)(Net
present value, profitability index, and internal rate of return calculations) You are
considering two independent projects, Project A and Project B. The initial cash outlay
associated with Project A is $56,000 and the initial cash outlay associated with Project B
is $72,000. The discount rate on both projects is 10.6 percent. The expected annual
cash flows from each project are as follows:
a. The NPV of Project A is $.(Round to the nearest cent.)
The NPV of Project B is $,.(Round to the nearest cent.)
b. The PI of Project A is .(Round to two decimal places.)
The PI of Project B is .(Round to two decimal places.)
c. The IRR of Project A is %.(Round to two decimal places.)
The IRR of Project B is %.(Round to two decimal places.)
d. Should the projects be accepted or not? (Select the best choice below.)
A. Neither Project A nor Project B should be accepted.
B. Both Project A and Project B should be accepted.
C. Only Project B should be accepted.
D. Only Project A should be accepted.
Please take time and effort to answer this. Thank you so much.
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