Question: Your company is considering two mutually exclusive projects, A and B. Project A involves an outlay of 100 million which will generate an expected cash

Your company is considering two mutually exclusive projects, A and B. Project A involves an outlay of 100 million which will generate an expected cash inflow of 25 million per year for 6 years. Project B calls for an outlay of 50 million which will produce an expected cash inflow of 13 million per year for 6 years. The companys cost of capital is 12 percent.

Calculate the NPV and IRR of each project.
What is the NPV and IRR of the differential project (the project that reflects the difference between Project B and Project A)? ON EXCEL

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