Question: PROCLEM 1: Given the following data for two independent projects: Project A and Project B: (a) Calculate the NPV of the two projects. (b) Calculate

PROCLEM 1: Given the following data for two independent projects: Project

PROCLEM 1: Given the following data for two independent projects: Project A and Project B: (a) Calculate the NPV of the two projects. (b) Calculate the IRR of the two projects (c) Indicate your accept/Reject decisions for each project (d) What would be your decision if the projects were mutually exclusive projects. [Note: Use NPV for decision regarding mutually exclusive projects as IRR is not applicable for such projects) Year Project A Project B 0 (200,000) (200,000) 1 13,500 92,500 36,700 65,900 75,400 50,300 84,000 32,700 99,600 25,000 WACC = 9.5% 2 3 4 5

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