All Problem are related on some part. Please Solve Both.

1) Walmart Inc is considering Project A. Cash flows for Project A are as follows:

An initial outlay or cost of $105,000 at time 0. Positive cash flows of 50,000 and 40,000 in year 1 and year 2 respectively. In year 3 and 4 positive cash flows equal $10,000 and $13,000 respectively.

1. What is the internal rate of return (IRR) for this project? ___________
2. Assume the wacc = 7.5% and the Project is independent of other projects. Will you accept or reject this project? ___________ Explain your answer.
3. What is the NPV of the project should the wacc equal the IRR you calculated in part A? _____________
4. What is the NPV of Project A given the wacc =10%? _______

2) Walmart Inc. is considering Project B. Cash flows for Project B are as follows:

An initial outlay or cost of $-15,000 today.

An additional outlay or cost of -5,000 will occur at the beginning of Year 2.

Positive cash flows are expected to start at the end of Year 2 and continue until end of Year 6.

The positive cash flows are estimated as follows:

Year 2	12,500
Year 3	10,000
Year 4	10,000
Year 5	12,500
Year 6	8,000

1. Are the net cash flows normal or nonnormal cash flows? ________________Explain your answer.
2. What is the NPV of Project B if wacc = 8%? __________
3. Will you accept or reject Project B? __________Explain.
4. If Project A (in Problem 1) and Project B (in Problem 2) are mutually exclusive, which project(s) would you accept based on the NPV method and a wacc of 8%? _________________Explain your answer(s).