Question: You are considering two projects, A and B. Each project will cost $180,000, the WACC is 8.5%, and the projected cash flows are as follows:

 You are considering two projects, A and B. Each project will

You are considering two projects, A and B. Each project will cost $180,000, the WACC is 8.5%, and the projected cash flows are as follows: Project A: Year 1: $12,580; Year 2: $37,733; Year 3: $70,437; Year 4: $88,050; Year 5: $100,625. Project B: Year 1: \$90,562; Year 2: $67,920; Year 3: $50,312; Year 4: $36,735; and Year 5: $25,156. Calculate the NPV for project A. A. What is the IRR for project B? Av Using a discount rate of 8.50%, and assuming projects A and B are mutually exclusive, which project should be selected? A

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