Question: O Brian Cliff is evaluating two mutually exclusive projects (expected cash flows shown below). The firm's cost of capital is 13.5 percent. Year Project A

O Brian Cliff is evaluating two mutually exclusive projects (expected cash flows shown below). The firm's cost of capital is 13.5 percent. Year Project A Project B (600) (600) 400 310 260 400 100 NPV? 200 WN IRR? Calculate the NPVs and IRRs for Projects A and B. Project A's NPV is greater than Project B's NPV by 71.25. Project A's NPV is $93.69, and Project B's NPV is $22.64. Project A's IRR is 21.27 percent, and Project B's IRR is 18.70 percent. Project A's NPV is greater than Project B's NPV by 67.79

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