Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 8%, has estimated its cash flows as shown in the following table:

	Project A	Project B
Initial investment (CF 0CF0)	$110,000	$94,000
Year (t)	Cash inflows (CF Subscript tCFt)
1	$15,000	$50,000
2	$35,000	$25,000
3	$30,000	$35,000
4	$40,000	$15,000
5	$65,000	$10,000

a.The NPV of project A is $_________. (Round to the nearest cent.)

According to the NPV method, is project A acceptable?(Select the best answer below.)

A. No

B. Yes

The NPV of project B is $_________. (Round to the nearest cent.)

Is project B acceptable on the basis of NPV?(Select the best answer below.)

A. No

B. Yes

b. The IRR of project A is _______%. (Round to two decimal places.)

Is project A acceptable on the basis of IRR?(Select the best answer below.)

A. Yes

B. No

The IRR of project B is _______%. (Round to two decimal places.)

Is project B acceptable on the basis of IRR?(Select the best answer below.)

A. Yes

B. No