Question: *Please show your work using a financial calculator and show all calculator inputs used* 18. Project A has an initial cost of $60,000 and annual
*Please show your work using a financial calculator and show all calculator inputs used*
18. Project A has an initial cost of $60,000 and annual cash flows for Years 1 to 3 of $30,000, $38,000 and $40,000, respectively. Project A has a required return of 18 percent. Project B has an initial cost of $120,000 and annual cash flows for Years 1 to 3 of $40,000, $63,000 and $90,000, respectively. Project B has a required return of 16 percent. Based on that, answer the questions below: What is the NPV of the Project A and Project B? (5 points) a. b. What is the IRR of the Project A and Project B? (5 points) c. If the two projects are mutually exclusive, which project should you select? (3 points) d. If the two projects are NOT mutually exclusive, should you select Project A, Project B, or both? (2 points)
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