4. Two projects being considered are mutually exclusive and have the following projected cash flows:. If the

required rate of return on these projects is 5 percent, what is each projects IRR?

	Project A	Project B
Year	Cash Flow	Cash Flow
0	-60,000	-60,000
1	15,000	0
2	15,000	0
3	15,000	0
4	15,000	0
5	15,000	75,000

5. As the director of capital budgeting for Atlanta Corporation, you are evaluating one project

based on the payback period and discounted payback period. Please calculate both

the payback period and discounted payback period for the following project based on

a cost of capital of 16%.

	Project
Year	Cash Flow
0	-80,000
1	40,000
2	30,000
3	25,000
4	20,000
5	15,000
6	10,000