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Thomas Company is considering two mutually exclusive projects. The​ firm, which has a cost of capital...

Thomas Company is considering two mutually exclusive projects. The​ firm, which has a cost of capital of 8%, has estimated its cash flows as shown in the following​ table:

A is on the left, B is on the right

Initial investment 130000 102000
Year Cash inflows
1 20000 55000
2 40000 40000
3 50000 20000
4 60000 15000
5 50000 20000

a.  Calculate the NPV of each​ project, and assess its acceptability.

b.   Calculate the IRR for each​ project, and assess its acceptability.

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jeff jeffy answered 1 year ago
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