A firm is considering two mutually exclusive projects A and B The firm, which has a 12 cost of capital, has estimated the cash flows from each project as shown in the following table Year A B 0 $600 $800 1 700 0 2 150 100 3 150 1,500 Calculate the NPV of each project Calculate the IRR for each project What is the crossover rate (This should be calculated show all work) What is your recommendation to the firm Please explain carefully and be specific

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Question: A firm is considering two mutually exclusive projects A and B. The firm, which has a 12% cost of capital, has estimated the cash flows

A firm is considering two mutually exclusive projects A and B. The firm, which has a 12% cost of capital, has estimated the cash flows from each project as shown in the following table:

Year	A	B
0	-$600	-$800
1	700	0
2	150	100
3	150	1,500

Calculate the NPV of each project.
Calculate the IRR for each project.
What is the crossover rate? (This should be calculated; show all work).
What is your recommendation to the firm? Please explain carefully and be specific.

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