$14-15.$ Project S has a cost of $$10,000$ and is expected to produce benefits $($cash flow$)$ of $$3,000$ per year for $5$ years. Project L costs $$25,000$ and is expected to produce cash flow of $$7,400$ per year for $5$ years. Calculate the two projects$$ NPV and IRR assuming a cost of capital of $12\%.$

$14.$ Net present value:

A$.$ NPV $($S$)=614\mathrm{.}3$ NPV $($L$)=1,375\mathrm{.}3$

B$.$ NPV $($S$)=714\mathrm{.}3$ NPV $($L$)=1,475\mathrm{.}3$

C$.$ NPV $($S$)=804\mathrm{.}3$ NPV $($L$)=1,575\mathrm{.}3$

D$.$ NPV $($S$)=814\mathrm{.}3$ NPV $($L$)=1,675\mathrm{.}3$

E$.$ NPV $($S$)=1,014$ NPV $($L$)=1,775\mathrm{.}3$

$15.$ Internal rate of return $($IRR$)$:

A$.$ IRR $($S$)=15\mathrm{.}24$ IRR $($L$)=14\mathrm{.}67\%$

B$.$ IRR $($S$)=13\mathrm{.}24$ IRR $($L$)=13\mathrm{.}67\%$

C$.$ IRR $($S$)=14\mathrm{.}24$ IRR $($L$)=15\mathrm{.}67\%$

D$.$ IRR $($S$)=16\mathrm{.}24$ IRR $($L$)=12\mathrm{.}67\%$

E$.$ IRR $($S$)=10\mathrm{.}24$ IRR $($L$)=10\mathrm{.}67\%$