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You are analyzing proposed projects and have compiled the following information: WACC (Required Return): 8.00% 0 3 Year 1 2 Project A CFS -$1,250,000 $400,000

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You are analyzing proposed projects and have compiled the following information: WACC (Required Return): 8.00% 0 3 Year 1 2 Project A CFS -$1,250,000 $400,000 $500,000 $600,000 Project B CFS -$1,250,000 $500,000 $500,000 $500,000 Compute the IRRs of these projects? Would the company accept one or both projects based on the IRR criterion? Accept Project A only Accept Project B only Accept both Project A and Project B Reject both Project A and Project B

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