Question: Question 6 Given the following cash flows for Project E and Project F: Year Project E Project F 0 -70000 -100000 1 20000 22000 2

Question 6

Given the following cash flows for Project E and Project F:

Year	Project E	Project F
0	-70000	-100000
1	20000	22000
2	25000	27000
3	30000	32000
4	35000	37000
5	40000	42000
6	45000	47000

Requirements: a. Calculate the NPV for both projects with an 8% discount rate. b. Determine the IRR for each project. c. Calculate the payback period for both projects. d. State which project(s) should be selected if they are independent. e. State which project should be selected if they are mutually exclusive.

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