Question: Your division is considering two investment projects, each of which requires an up-front expenditure of $23 million. You estimate that the investments will produce the

Your division is considering two investment projects, each of which requires an up-front expenditure of $23 million. You estimate that the investments will produce the following net cash flows: Year

Year Project A Project B

1 $ 6,000,000 $20,000,000

2 10,000,000 10,000,000

3 20,000,000 8,000,000

What are the two projects' net present values, assuming the cost of capital is 5%? Round your answers to the nearest dollar.

Project A $ Project B $

What are the two projects' net present values, assuming the cost of capital is 10%? Round your answers to the nearest dollar.

Project A $ Project B $

What are the two projects' net present values, assuming the cost of capital is 15%? Round your answers to the nearest dollar.

Project A $ Project B $

What are the two projects' IRRs at these same costs of capital? Round your answers to two decimal places.

Project A % Project B %

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