Worldwide Widget Manufacturing, Inc., wants to add two new production lines of widgets. You$$re asked to analyze whether to go forward with two mutually exclusive projects. The cash flows of both projects are displayed below. Your company uses a cost of capital of $9$ percent to evaluate projects such as the two you$$re now analyzing. Show all calculations.

Year: $012345$

Project A Cash Flow $$$$1,000$ $$150$ $$300$ $$500$ $$300$ $$250$

Project B Cash Flow $$$$1,400$ $$300$ $$470$ $$200$ $$600$ $$350$

Calculate the payback of Project A:

Calculate the payback of Project B:

Calculate the IRR of Project A:

Calculate the IRR of Project B:

Using the NPV method and assuming a cost of capital of $6$ percent, calculate the NPV of these two projects. Which of these mutually exclusive projects should the company accept?