7. INTERMEDIATE Two mutually exclusive investment projects have the following forecasted cash flows: Details Year A B 0 $-20,000 Q 1 +10,000 2 +10,000 0 3 +10,000 OO 0 4 +10,000 +60,000 a. Compute the internal rate of return for each project. b. Compute the net present value for each project if the firm has a 10 percent cost of capital. c. Which project should be adopted? Why? 071 1920