You've estimated the following cash flows (in $) for two mutually exclusive projects:

Year	Project A	Project B
0	-5,700	-8,550
1	1,325	1,325
2	2,148	2,148
3	4,325	8,273

The required return for both projects is 8%.

Part 1

What is the IRR for project A? (3+ decimals)

Part 2

What is the IRR for project B? (3+ decimals)

Part 3

Which project seems better according to the IRR method?

Project A

Project B

Part 4

What is the NPV for project A?

Part 5

What is the NPV for project B?

Part 6

Which project seems better according to the NPV method?

Project A

Project B

Part 7

Compare the answers to parts 3 and 6. If both projects are mutually exclusive, which one should you accept?

Project B

Project A