(Related to Checkpoint 11.1, Checkpoint 11.3, and Checkpoint 11.4) (Net present value, profitability index, and internal...

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(Related to Checkpoint 11.1, Checkpoint 11.3, and Checkpoint 11.4) (Net present value, profitability index, and internal rate of return calculations) You are considering two independent projects, Project A and Project B. The initial cash outlay associated with Project A is $55,000 and the initial cash outlay associated with Project Bis $68,000. The discount rate on both projects is 11.2 percent. The expected annual cash flows from each project are as follows: Project A Project B $(68,000) Year 0 $(55,000) 1 12,000 13,000 2 12,000 13,000 3 12,000 13,000 4 12,000 13,000 5 12,000 13,000 8 12,000 13,000 (Click on the icon in order to copy its contents into a spreadsheet.) Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted or not. a. The NPV of Project A is $ The NPV of Project B is $ b. The Pl of Project A is (Round to the nearest cent.) (Round to the nearest cent.) (Round to two decimal places.) The Pl of Project B is (Round to two decimal places.) c. The IRR of Project A is %. (Round to two decimal places.) The IRR of Project B is %. (Round to two decimal places.) d. Should the projects be accepted or not? (Select the best choice below.) A. Both Project A and Project B should be accepted. OB. Only Project B should be accepted. C. Neither Project A nor Project B should be accepted. OD. Only Project A should be accepted. (Related to Checkpoint 11.1, Checkpoint 11.3, and Checkpoint 11.4) (Net present value, profitability index, and internal rate of return calculations) You are considering two independent projects, Project A and Project B. The initial cash outlay associated with Project A is $55,000 and the initial cash outlay associated with Project Bis $68,000. The discount rate on both projects is 11.2 percent. The expected annual cash flows from each project are as follows: Project A Project B $(68,000) Year 0 $(55,000) 1 12,000 13,000 2 12,000 13,000 3 12,000 13,000 4 12,000 13,000 5 12,000 13,000 8 12,000 13,000 (Click on the icon in order to copy its contents into a spreadsheet.) Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted or not. a. The NPV of Project A is $ The NPV of Project B is $ b. The Pl of Project A is (Round to the nearest cent.) (Round to the nearest cent.) (Round to two decimal places.) The Pl of Project B is (Round to two decimal places.) c. The IRR of Project A is %. (Round to two decimal places.) The IRR of Project B is %. (Round to two decimal places.) d. Should the projects be accepted or not? (Select the best choice below.) A. Both Project A and Project B should be accepted. OB. Only Project B should be accepted. C. Neither Project A nor Project B should be accepted. OD. Only Project A should be accepted.