Question: answer all questions please 1. Two projects being considered by a firm are mutually exclusive and have the following projected cash flows: Project A Project
1. Two projects being considered by a firm are mutually exclusive and have the following projected cash flows: Project A Project B Year Cash Flow Cash Flow 0 -$600,000 -$600,000 1 245,500 $150,000 2 245,500 -$ 40,000 3 245,500 $450,000 The firm's cost of capital is 8 percent. Based only on the information given, a. What are the NPV for Project A and B? Which project do you choose based on the NPV? b. What are the payback periods for Project A and B? Which project do you choose based on the payback periods? c. What are the IRRs for Projects A and B? Which project do you choose based on the IRR? d. What are the MIRR for Projects B? When would be appropriate to use MIRR instead of IRR? Explain
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