8

9

A firm is considering two projects, A and B. Each project will last for 4 years. The projects are MUTUALLY EXCLUSIVE. The projected cash flows for each project are shown below: Year 2 3 4 Project A -19.00 9.00 8.00 6.00 4.00 Project B -31.00 10.00 10.00 11.00 7.00 The cost of capital facing the firm is 5.00%. The projects are mutually exclusive. Using the NPV decision rule, what is your decision based on the results of part A and part B? (A, B, BOTH, or NONE) Submit Answer format: Text A firm is considering two projects, A and B. Each project will last for 4 years. The projects are MUTUALLY EXCLUSIVE. The projected cash flows for each project are shown below: Year 0 1 2 Project A -19.00 9.00 8.00 6.00 4.00 Project B -31.00 10.00 10.00 11.00 7.00 The cost of capital facing the firm is 5.00%. What is the IRR of project A? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))