Question: Problem 8-31 Question Help You are faced with two projects and have the opportunity to invest in either one or both of them. The cash

 Problem 8-31 Question Help You are faced with two projects and

Problem 8-31 Question Help You are faced with two projects and have the opportunity to invest in either one or both of them. The cash flows are as follows. Project Year 0 - $100 $100 Year 1 $25 - $25 Your cost of capital is 7%. Evaluate both projects with NPV and IRR, and determine what to do. The NPV of project Ais $ , and the NPV of project B is $ , so using the NPV rule, project should be selected. While the IRR of project Ais/ % and the IRR of project B is %, project should be selected because it is an unconventional project where an IRR the cost of capital would be a good thing. (Round to two decimal places as needed.)

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