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WACC=10.5% For the following two projects, calculate the net present value and IRR. Year Project A Project B 0 -$2.000.000 -$2,000,000 1 1,200.000 -350,000 2

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WACC=10.5%

For the following two projects, calculate the net present value and IRR. Year Project A Project B 0 -$2.000.000 -$2,000,000 1 1,200.000 -350,000 2 900.000 -60,000 3 300,000 60,000 90,000 350,000 5 70,000 700,000 6 1.200.000 7 2,250,000 If the two projects are independent, which project(s) should you accept? If the two projects are mutually exclusive, which project(s) should you accept? 4

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