Refer to the data regarding Hawkins Products in Exercise E26-25. Compute the IRR of each project, and use this information to identify the better investment.
Refer in Exercise E26-25,
Use the NPV method to determine whether Hawkins Products should invest in the following projects:
• Project A: Costs $285,000 and offers seven annual net cash inflows of $55,000. Hawkins Products requires an annual return of 14% on investments of this nature.
• Project B: Costs $395,000 and offers 10 annual net cash inflows of $77,000. Hawkins Products demands an annual return of 12% on investments of this nature.