INTERMEDIATE 7. Two mutually exclusive investment projects have the following forecasted cash flows: Year B $-20,000 0 1 $-20,000 +10,000 +10,000 +10,000 +10,000 2 0 0 4 +60,000 a. Compute the internal rate of return for each project. b. Compute the net present value for each project if the firm has a 10 percent cost of capital. c. Which project should be adopted? Why? NTERMEDIATE o