Your boss hands you the following information for a pair of mutually exclusive projects and asks for your recommendation. What should you do?

			Cash Flows
Project	Cost of Capital	IRR	Year 0	Year 1	Year 2	Year 3
A	10%	37%	$10,000	$9000	$5000	$2000
B	10%	23%	$10,000	$2900	$6000	$7000

Question content area bottom

Part 1

The NPV of project A is

$enter your response here,

and the NPV of project B is

$enter your response here.

Using the NPV rule, project

A

B

should be selected.

(Round to two decimal places as needed.)