Question: Company K is considering two mutually exclusive projects. The cash flows of the projects are as follows: Year 0 Project A Project B -$2,000,000 -$2,000,000

Company K is considering two mutually exclusive projects. The cash flows of the projects are as follows: Year 0 Project A Project B -$2,000,000 -$2,000,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 5,650,000 4 Compute the NPV and IRR for the above two projects, assuming a 13% required rate of return. Discuss the ranking conflict. What decision should be made regarding these two projects? a. b. c

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