1. Your division is considering two investment projects, each of which requires an up-front expenditure of $20 million. You estimate that the investments will produce the following net cash flows:

Year Project A Project B

1 $4,500,000 $20,000,000

2 10,000,000 10,000,000

3 20.000.000 6,500,000

1. What are the two projects NPVs assuming the cost of capital is 3%, 12%, 17%?
2. What are the two projects IRRs at those same costs of capital?