Question: Two mutually exclusive alternatives, projects C and D, have the following investments and cash flows: a. Calculate the NPV and IRR of each project. The

Two mutually exclusive alternatives, projects C and D, have the following investments and cash flows:

a. Calculate the NPV and IRR of each project. The company's cost of capital is 12 percent.
b. Which of the two projects would you accept? Explain.
c. Sketch the two projects' NPV profiles

Project C Project D $40,000 20,500 20,500 20,500 nvestment at period S40,000 Cash inflow at t1 Cash inflow at t= 2 Cash inflow at 1 = 3 10,000 10,000 47,000

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