Question: B E F H Question 13 (12 points) CAA, Inc. are considering two projects with the cash flows presented in the following table. The required

 B E F H Question 13 (12 points) CAA, Inc. are

B E F H Question 13 (12 points) CAA, Inc. are considering two projects with the cash flows presented in the following table. The required return for both projects is 12 percent. (a) If the two projects are independent, should you accept both projects or accept only one of them? Please use both NPV and IRR method to explain your choice. (b) If the two projects are mutually exclusive, which method should you use and which project should you accept? Why? Year 0 1 Project A -600,000 307,200 390,200 180,200 Project B -99,950 77,150 76,150 80,150 2 3

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