Question

PROJECT A PROJECT B Initial Outlay minus−​$5000050,000minus −​$7000070,000 Inflow year 1      1200012,000      1300013,000 Inflow year 2     ...

PROJECT A

PROJECT B

Initial Outlay

minus−​$5000050,000minus

−​$7000070,000

Inflow year 1

     1200012,000

     1300013,000

Inflow year 2

     1200012,000

     1300013,000

Inflow year 3

     1200012,000

     1300013,000

Inflow year 4

     1200012,000

     1300013,000

Inflow year 5

    12 00012,000

     1300013,000

Inflow year 6

    12 00012,000

     1300013,000

​(​NPV, ​PI, and IRR calculations​) You are considering two independent​ projects, project A and project B. The initial cash outlay associated with project A is ​$50 comma 000​, and the initial cash outlay associated with project B is ​$70 comma 000. The required rate of return on both projects is 10 percent. The expected annual free cash inflows from each project are in the popup​ window: LOADING.... Calculate the NPV​, PI​, and IRR for each project and indicate if the project should be accepted.

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