Question: Use the following information two mutually exclusive projects, Project A and Project B, for the next five questions. A B Year 0 -1300 -1000 Year
Use the following information two mutually exclusive projects, Project A and Project B, for the next five questions.
| A | B | |
| Year 0 | -1300 | -1000 |
| Year 1 | 750 | 500 |
| Year 2 | 600 | 400 |
| Year 3 | 500 | 600 |
The discount rate is 14%.
The NPV of A is $ and the NPV of B is $ .
Round-off the answer to an INTEGER.
5. Calculate the IRR of Project A.
6. Calculate the IRR of Project B.
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