You are considering two independent projects, Project A and Project B.The initial cash outlay associated with Project A is $50,000 and the initial cash outlay associated with Project B is $70,000.The discount rate on both projects is 12 percent.The expected annual cash flows from each project are as follows:

Year

Project A

Project B

0

$(50,000)

%(70,000)

1

12,000

13,000

2

12,000

13,000

3

12,000

13,000

4

12,000

13,000

5

12,000

13,000

6

12,000

13,000

Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted or not.

Discuss the differences between the three values you found - compare and contrast these three methods.