You have started an internship and your boss asks you to review a recent analysis that was done to compare three alternative proposals to enchance the firm's manufacturing facility. You find that the prior analysis ranked the proposals according to their IRR and recommended the highest IRR option , Proposal A. You are concerned and decide to redo the analysis using NPV to determine whether this reccomendation was appropriate. But while you are confident the IRR's were computed correctly, it seems that some of the underlying data regarding the cash flows that were estimated for each proposal was not included in the report. For Proposal B, you cannot find information regarding the total initial investment that was required in Year 0.

Here is info (in $ millions):

Proposal A

IRR Year 0 Year 1 Year2 Year 3 A 60.0% -$100 $30 $153 Year 3 =$88

Proposal B IRR= 43% Year 0=? Year 2=$0 Year 2= $295 Year 3= $117

a) Fill in missing values

b) Suppose the appropriate cost of capital for each alternative is 10%. using this info, determine the NPV of each proposal. Which project should the firm choose?