11. A company is considering two mutually exclusive projects. The free cash flows associa with these projects are as follows: Project A Project B Initial Outlay -50.000 -50.000 Inflow year 1 15.625 Inflow year 2 15.625 Inflow year 3 15.625 Inflow year 4 15.625 0 Inflow year 5 15.625 100.000 0 The required rate of return on these projects is 10%. A. What is each project's NPV? Which project is favourable according to NPV? (2p) B. Project A's IRR is said to be 17%. Check whether it is true. (2p) C. What is Project B's IRR? (Clue: Use PV formula and solve for r. 5/0,5 = 0,8706) (3p) Which project is favourable according to IRR? (3p) D. What has caused the ranking conflict? (2p) E. Which project should be accepted