You've estimated the following cash flows (in $) for two projects:

	A	B	C
1	Year	Project A	Project B
2	0	-710	-2,510
3	1	150	500
4	2	210	730
5	3	290	820
6	4	252	1,117

The required return is 7% for both projects.

Part 1

What is the IRR for project A?

Part 2

What is the IRR for project B?

Part 3

What is the NPV of project A?

Part 4

What is the NPV of project B?

Part 5

If the projects are mutually exclusive, which project should you choose?

Project A, based on the IRR

Neither

Project B, based on the NPV

Project B, based on the IRR

Project A, based on the NPV

Part 6

If the projects are independent, which project should you choose?

Neither

Project A, based on the NPV

Project B, based on the NPV

Both A and B, based on the NPVs of both projects

Project A, based on the IRR

Project B, based on the IRR