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Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent....

Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows for each project are given in the following table.

Year Project 1 Project 2
0 -$1,292,224 -$1,321,796
1 238,000 384,000
2 329,000 384,000
3 430,000 384,000
4 504,000 384,000
5 800,000 384,000



Calculate NPV and IRR of two projects. (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525. Round IRR answers to 2 decimal places, e.g. 15.25 or 12.25%.)

NPV of project 1 is $   
NPV of project 2 is $
IRR of project 1 is %
IRR of project 2 is %


Which project should be accepted?

Crane Corp. should accept                                                           neither projectproject 2project 1
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