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You are considering the following two projects and can take only one. Your cost of capital is 1 1 . 2 % . The cash

You are considering the following two projects and can take only one. Your cost of capital is 11.2%. The cash flows for the two projects are as follows($ million):
Project Year 0 Year 1 Year 2 Year 3 Year 4
A -$101 $25 $28 $38 $52
B -$101 $52 $38 $28 $22
a. What is the NPV of each project at your cost of capital? (Round to two decimal places.)
The NPV for project A is $_____ million.
The NPV for project B is $______million.
b. What is the IRR of each project?
(Round to two decimal places.)
The IRR for project A is _____%
The IRR for project B is _____%
c. At what cost of capital are you indifferent between the two projects?
(Round to two decimal places.)
You will be indifferent if the cost of capital is _____%
d. What should you do?
Given your cost of capital, which project would you choose?(Select the best choice below.)
A. You should invest in project Upper B, as it has the higher IRR.
B. You should invest in project Upper A, as it has the higher NPV.
C. You should invest in project Upper A, as it has the higher IRR.
D. You should invest in project Upper B, as it has the higher NPV.

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