Project Year $0$ Year $1$ Year $2$ Year $3$ Year $4$

A $-$$$101$ $$25$ $$28$ $$38$ $$52$

B $-$$$101$ $$52$ $$38$ $$28$ $$22$

a$.$ What is the NPV of each project at your cost of$$ capital? $($Round to two decimal$$ places.$)$

The NPV for project A is $$$$\_\_\_\_\_$ million.$$

The NPV for project B is $$$$\_\_\_\_\_\_$million.

b$.$ What is the IRR of each$$ project?

$($Round to two decimal$$ places.$)$

The IRR for project A is $\_\_\_\_\_\%$

The IRR for project B is $\_\_\_\_\_\%$

c$.$ At what cost of capital are you indifferent between the two$$ projects?

$($Round to two decimal$$ places.$)$

You will be indifferent if the cost of capital is $\_\_\_\_\_\%$

d$.$ What should you$$ do$?$

Given your cost of$$ capital, which project would you$$ choose?$($Select the best choice$$ below.$)$

A$.$ You should invest in project Upper B$,$ as it has the higher IRR.

B$.$ You should invest in project Upper A$,$ as it has the higher NPV$.$

C$.$ You should invest in project Upper A$,$ as it has the higher IRR.

D$.$ You should invest in project Upper B$,$ as it has the higher NPV$.$