The following table contains projected cash flows for two mutually exclusive projects. Use the information for...

*The following table contains projected cash flows for two mutually exclusive projects. Use the information for questions Part A-Part B.*
Year	Project A	Project B
0	-55000	-55000
1	10000	7500
2	9000	7500
3	8000	7500
4	8000	7500
5	7500	8000
6	7500	9000
7	7500	9000
8	7500	10000

*Part A. Calculate NPVs for both project and for various interest rates.*
Annual Interest Rates	NPVA	NPVB	Which Project is preferred
4.22%
3.59%
2.51%

*Part B. Calculate IRRs for both project.*
	IRR(A)	IRR(B)	Which project is preferred if the required rate is 5%

Expert Solution

Calc:

jeff jeffy answered 3 years ago

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