NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 15%, has estimated its cash flows as shown in the following table: E a. Calculate the NPV of each project, and assess its acceptability. b. Calculate the IRR for each project, and assess its acceptability, a. The NPV of project Ais S. (Round to the nearest cent.) According to the NPV method, is project A acceptable? (Select the best answer below.) Data Table No O 0 Yes (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) The NPV of project B is $. (Round to the nearest cent.) Is project B acceptable on the basis of NPV? (Select the best answer below.) Project A $140,000 Project B $89,000 Yes 0 O No Initial investment (CF) Year (0) 1 2 3 3 4 5 b. The IRR of project Ais %. (Round to two decimal places.) Is project A acceptable on the basis of IRR? (Select the best answer below.) Cash inflows (CF) $20,000 $40,000 $30,000 $30,000 $50,000 $20,000 $60,000 $25,000 $60,000 $20,000 0 O Yes Print Done The IRR of project B is %. (Round to two decimal places.) Is project B acceptable on the basis of IRR? (Select the best answer below.) O No 0 Yes