You are considering two independent projects, Project A and Project B. The initial cash outlay associated with Project A is $50,000 and the initial cash outlay associated with Project B is $70,000. The discount rate on both projects is 12 percent. The expected annual cash flows from each project are as follows:

Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted ornot.

Project B (70,000) 13,000 13,000 13,000 13,000 13,000 13,000 Year Project A $(50,000) 12,000 12,000 12,000 12,000 12,000 12,000