You are analyzing the following two projects, A and B The required return is 10 Year Project A Cash flow Project B Cash flow 0 $75,000 $75,000 1 $24,800 $22,000 2 $29,500 $27,500 3 $45,300 $51,300 Which project(s) should be accepted if the two projects are independent Explain why If you use the NPV (or IRR) rule, provide the NPVs (or IRRs of the two projects

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Question: You are analyzing the following two projects, A and B. The required return is 10%. Year Project A Cash flow Project B Cash flow 0

You are analyzing the following two projects, A and B. The required return is 10%.

Year	Project A Cash flow	Project B Cash flow
0	-$75,000	-$75,000
1	$24,800	$22,000
2	$29,500	$27,500
3	$45,300	$51,300

Which project(s) should be accepted if the two projects are independent? Explain why. If you use the NPV (or IRR) rule, provide the NPVs (or IRRs of the two projects.

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