You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $55,000, and the initial cash outlay associated with project B is $75,000. The required rate of return on both projects is 9 percent. The expected annual free cash inflows from each project are below:

Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted.

Initial Outlay Inflow year 1 Inflow year 2 Inflow year 3 Inflow year 4 Inflow year 5 Inflow year 6 PROJECT A - $55,000 17,000 17,000 17,000 17,000 17,000 17,000 PROJECT B - $75,000 18,000 18,000 18,000 18,000 18,000 18,000