Question: Callaway Associates, Inc. is considering the following mutually exclusive projects. Callaways Cost of capital is 12%. a. Calculate each projects NPV and IRR. b. Which

Callaway Associates, Inc. is considering the following mutually exclusive projects. Callaway€™s Cost of capital is 12%.

Callaway Associates, Inc. is considering the following mutually exclusive projects.

a. Calculate each project€™s NPV and IRR.
b. Which project should be undertaken? Why?

Year Proiect ($80,000) $44,000 $34,000 $14,000 $14,000 Project B ($80,000) $65,000 $30,000 4 5,000

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