Bumbles Bees, Inc., has identified the following two mutually exclusive projects:

Bumbles Bees, Inc., has identified the following two mutually exclusive projects:

Year	Cash Flow (A)	Cash Flow (B)
0	-17,000	-17,000
1	8,000	2,000
2	7,000	5,000
3	5,000	9,000
4	3,000	9,500

1. Calculate the Internal Rate of Return (IRR) for each of the project using Trial and Error method.
2. Apply the IRR decisionrule, which project should the company accept?
3. If the required return is 11 percent, evaluate the NPV for each of these projects?
4. Which project will you choose if you apply the NPV decision rule?
5. Manager of Bumbles Bees, Inc want to know the payback period of each project. Make necessary calculations to find the payback period of Project A and Project B.