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

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Your boss hands you the following information for a pair of mutually exclusive projects and asks for your recommendation. What should you do? Project A B Cost of Capital 13% 13% IRR 22% 18% Year 0 - $10,000 - $10,000 Cash Flows Year 1 Year 2 $7000 $3000 $2600 $5000 Year 3 $4000 $7000 Using the NPV rule, project should be selected. The NPV of project A is $ and the NPV of project B is (Round to two decimal places as needed.)

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