Question: Projects A and B are mutually exclusive lending projects. The table below provides information regarding the investment cost and cash flows of the two projects.

Projects A and B are mutually exclusive lending projects. The table

Projects A and B are mutually exclusive lending projects. The table below provides information regarding the investment cost and cash flows of the two projects. The firm uses a 10% discount rate. Year 0 1. Project A ($20.000) 4,000 510001 6.000 7.000 91000 Project B ($1201000) 6.000 6.000 61000 6.000 61000 4 5 Calculate the payback period. NPV: and IRR for each of the above mutually exclusive projects, then comment on the advisabilit of selection with reason

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