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Kilroy, Inc. is considering two mutually exclusive projects. The cash flows of the projects are as...

Kilroy, Inc. is considering two mutually exclusive projects. The cash flows of the projects are as follows:

Year

Project A

Project B

0

-$2,000,000

-$2,000,000

1

500,000

2

500,000

3

500,000

4

500,000

5

500,000

6

500,000

7

500,000

5,650,000

a. Compute the NPV and IRR for the above two projects, assuming a 13% required rate of return. NPV for project A=

b. Discuss any potential conflict in evaluating these candidate projects.

c. What decision should be made regarding these two projects?

using this formula

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