Question: (11-b) EXPECTED NET CASH FLOWS Year Project A Project B 0 -$300 -$405 1 -387 134 2 -193 134 3 -100 134 4 600 134

(11-b) EXPECTED NET CASH FLOWS
Year Project A Project B
0 -$300 -$405
1 -387 134
2 -193 134
3 -100 134
4 600 134
5 600 134
6 850 134
7 -180 134

B.What is each project's IRR? Round your answers to two decimal places. Project A _____% Project B_____ %

C.Calculate the two projects' NPVs, if you were told that each project's cost of capital was 10%. Round your answers to the nearest cent. Project A $ Project B $ Which project, if either, should be selected?

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