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You are asked to evaluate two projects A and B. The cost of capital is 10%. The expected cash flows are given as Year Project

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You are asked to evaluate two projects A and B. The cost of capital is 10%. The expected cash flows are given as Year Project A Project B 0 ($40,000) ($40,000) 1 8,000 15,000 2. 14,000 0 3 20,000 10,000 30,000 40,000 5 40,000 50,000 Answer the next following 6 questions: a. What is the NPV of Project A? b. What is the NPV of Project B? c. If Project A and B are mutually exclusive, which project should you accept? d. What is the IRR of Project A (input your answer in %, i.e., if your answer is 12.45%, input 12.45 in the answer box)? e. What is the IRR of Project B (input your answer n %) f. If the two projects are mutually exclusive, which project should you accept? Input your answers in the next 6 questions. Suggestion calculate all the answers first and then input the answers into the next 6 answer boxes

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