The following projects are under consideration by Smith's Food
Markets, Inc. Smith's requires a 14% rate of return on projects of
this nature.
Project A: CF0 = -$90,000;
CF1-CF6 = +$25,000
Project B: CF0 = -$200,000;
CF1-CF3 = +$90,000
What is the NPV of project B?
Group of answer choices
$7,217
$70,000
$8,947
$16,164
$60,000
What is the IRR of project B?
Group of answer choices
22.50%
27.78%
16.88%
45.00%
16.65%