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1. Calculate the NPV and IRR of the following projects using a discount rate of 10%:
Project A: Yr 0= -$1000 Yr 1 = $400 Yr 2 = $700 Yr 3 = $700 Yr 4 = $800 Yr 5 = $900
Project B: Yr 0 = -$1000 Yr 1 = $650 Yr 2 = $800 Yr 3 = $700 Yr 4 = $700 Yr 5 = $200
If the projects were independent which would you accept? If the projects are mutually exclusive which would you accept?
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