You are to evaluate two mutually exclusive business projects with expected cash flows

described below. Assuming a 10% weighted average cost of capital (WACC), calculate

NPV and IRR for each project and determine which project to accept.

(1) Project As NPV :

(2) Project As IRR:

(3) Project Bs NPV:

(4) Project Bs IRR :

(5) Which project should be chosen?

1 2 3 4 Project A WACC=10 H + 50 -100 40 30 10 0 2 4 Project B WACC=10 - CO + -100 10 30 40 CO