Question: Project evaluation {L04}. Consider the cash flows for the two projects below: Project A Project B Initial cash outlay $16,666 $56,666 Net cash inows year'

Project evaluation {L04}. Consider the cash flows for the two projects below: Project A Project B Initial cash outlay $16,666 $56,666 Net cash inows year' 1 $5,666 22,666 Net cash inflows year 2 $5,666 22,666 Net cash inows year 3 $5,666 22,666 The company uses a discount rate of 10% for evaluating projects. Regm'rm': a. Calculate the net present value for the two projects. 1iWhich project yields the greater NPV? b. Calculate the internal rate of return (IRE) For the tart.) projects. lWhich project has the higher rate of return? 5-: Why does the ranking per NPV favor project B over project A, even though project A is more prof itable, per the Hill criterion

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