Question: Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows for each project are given

Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows for each project are given in the following table.

Year Project 1 Project 2
0 -$1,266,858 -$1,100,968
1 256,000 319,000
2 318,000 319,000
3 480,000 319,000
4 483,000 319,000
5 773,000 319,000

NPV of project 1 is$

NPV of project 2 is$

IRR of project 1 is %

IRR of project 2 is %

Crane Corp should accept:

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