Question: Please follow rounding instructions (in red), or it will be wrong, thanks! Question 8 5 pts You are a senior manager at Nittany Aircraft and

Please follow rounding instructions (in red), or it will be wrong, thanks!

Please follow rounding instructions (in red), or it will be wrong, thanks!

Question 8 5 pts You are a senior manager at Nittany Aircraft

Question 8 5 pts You are a senior manager at Nittany Aircraft and have been authorized to spend up to $550,000 for projects. The three projects you are considering have the following characteristics: Project A: Initial investment of $395,000. Cash flow of $205,000 at year 1 and $225,000 at year 2. This is a plant expansion project, where the required rate of return is 11 %. Project B: Initial investment of $205,000. Cash flow of $210,000 at year 1 and $175,000 at year 2. This is a new product development project, where the required rate of return is 21 %. Project C: Initial investment of $155,000. Cash flow of $170,000 at year 1 and $75,000 at year 2. This is a market expansion project, where the required rate of return is 21 %. Assume the corporate discount rate is 13 %. What is the IRR of project B? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations) What is the NPV of project B? (Round answer to 2 decimal places. Do not round intermediate calculations) What is the Pl of project B? (Round answer to 2 decimal places. Do not round intermediate calculations)

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