5. The after-tax cash flows for two mutually exclusive projects have been estimated, and the following...

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5. The after-tax cash flows for two mutually exclusive projects have been estimated, and the following information has been provided: (30 Points) Expected Net Cash Flows Year Machine D Machine Q 0 $(2,500) $(2,500) 1 2,000 0 2 900 1,800 3 100 1,000 4 100 900 The company's required rate of return is 14 percent, and it can get unlimited funds at that cost. What is the IRR of the better project? (Hint: Note that the better project might not be the one with the higher IRR.) (30 Points) 5. The after-tax cash flows for two mutually exclusive projects have been estimated, and the following information has been provided: (30 Points) Expected Net Cash Flows Year Machine D Machine Q 0 $(2,500) $(2,500) 1 2,000 0 2 900 1,800 3 100 1,000 4 100 900 The company's required rate of return is 14 percent, and it can get unlimited funds at that cost. What is the IRR of the better project? (Hint: Note that the better project might not be the one with the higher IRR.) (30 Points)