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1. Foresburg, Co. is considering two mutually exclusive projects, A and B.

Project A costs $275,000 (initial outlay) and is expected to generate $185,000 in year one and $195,000 in year two. The firm's required rate of return (discount rate) for these projects is 10%.

1. The net present value (NPV) for Project A is ___________.

2. The internal rate of return (IRR) for Project A is ____________.

Project B costs $225,000 (initial outlay) and is expected to generate $75,000 in year one, $77,000 in year two, $53,000 in year three, and $43,000 in year four. The firm's required rate of return (discount rate) for these projects is 10%.

3. The net present value (NPV) for Project B is _____________.

4. The profitability index (PI) for Project B is _____________.

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