wo mutually exclusive investment projects have the following forecasted cash flows:

Year	A			B
0		-$25,000			-$25,000
1		+13,000			0
2		+13,000			0
3		+13,000			0
4		+13,000			+75,000

Use Table II and Table IV to answer the questions.

1. Compute the internal rate of return for each project. Round your answers to one decimal place. IRR_A: %

   IRR_B: %

2. Compute the net present value for each project if the firm has a 9 percent cost of capital. Round your answers to the nearest dollar. NPV_A: $

   NPV_B: $

3. Which project should be adopted? Why? -Select-Project AProject BItem 5 should be chosen because it has the higher -Select-NPVIRRItem 6 . It is assumed that the firm's reinvestment opportunities are more accurately represented by the -Select-firm's cost of capitalunique internal rate of return of either projectItem 7 .