Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 11%, has estimated its cash flows as shown in the following table:

Project A

Project B

Initial investment

(CF 0CF0)

$150,000

$99,000

Year

(t)

Cash inflows

(CF Subscript tCFt)

1

$35,000

$60,000

2

$35,000

$35,000

3

$50,000

$25,000

4

$50,000

$10,000

5

$55,000

$25,000

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