The chief financial officer has asked you to calculate the net present values and internal rates of return of two $50,000 mutually exclusive investments with the following cash flows:

If the firm€™s cost of capital is 9 percent, which investment(s) would you recommend? Would your answer be different if the cost of capital were 14 percent?

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Project A Project B Cash Flow Cash Flow $10,000 25,000 30,000 Year 1 22,000 48,000