Question: 4. Consider the following two mutually exclusive projects Year 0 1 Cash Flow Project 1 -150,000 $40,000 $90,000 $120,000 Cash Flow Project 2 -150,000 $100,000

4. Consider the following two mutually exclusive projects Year 0 1

4. Consider the following two mutually exclusive projects Year 0 1 Cash Flow Project 1 -150,000 $40,000 $90,000 $120,000 Cash Flow Project 2 -150,000 $100,000 $80,000 $60,000 Nm a) Calculate the net present value (NPV) of each project assuming an 8% discount rate. b) Calculate the Internal Rate of Return (IRR) for each project

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