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Score: 0 of 1 pt 3. (NPV, PV, and IRR calculations) You are considering two independent projects, praject A and project B. The initial cash
Score: 0 of 1 pt 3. (NPV, PV, and IRR calculations) You are considering two independent projects, praject A and project B. The initial cash outlay associated with project is $55,000, and the initial cash outlay associated with project Bis 575.000. The required rate of return on bon projects is 9 percent. The expected annual free cash inflows from each project are in the popup window:Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted. 3 of 7 (0 co a. What is the NPV of project A? (Round to the nearest cent.) What is the NPV of project B? $ (Round to the nearest cent.) Problem 10-7 (similar to) Data Table because its NPV is (2) and project should be (3) because its NPV is Based on the NPV criterion, praject A should be (1) (4) (Select from the drop down menus.) b. What is the plot project A? (Click on the following icon in order to copy its contents into a spreadsheet.) than 1.00 and project B should be (7) Initial Outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 Inflow year 6 because its Plis PROJECT A -$55,000 17,000 17,000 17,000 17,000 17.000 17.000 (Round to three decimal places.) What is the Prof project B? (Round to three decimal places Based Pl ( on the pl criterion, project Ashould be (5) because its Pris (6). (8). than 1.00. (Select from the drop-down menus.) c. What is the IRR of project A? % Round to two decimal places. What is the IRR of project B? PROJECT B - $75,000 18,000 18,000 18,000 18,000 18,000 18,000 % (Round to two decimal places. Based on the IRR criterion, project A should be (9) because its IRR IS (10) - than the expected rate of return and project B should be (11) - - because its IRR IS (12) than the expected rate of retum. (Select from the drop-down menus.) 1: Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Print Done Initial Outlay Intlow year 1 Inflow year 2 Inflow year 3 Intiow year 4 Intiow year 5 Intlow year 6 PROJECT A - $55,000 17,000 17,000 17,000 17.000 17,000 17,000 PROJECT B - $75,000 18.000 18,000 18,000 18.000 18,000 18.000 {1} c accepted rejected (2) negative (3) accepted njected positive o negative (51 accepted rected a greater o less (7) accepted mjected (B) o less greater positive 181 o rejected (10) O greater accepted (11) rejected accepted (12) 1998 O greater Enter your answer in the answer box and then click Check
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