Your division is considering two investment projects, each ofwhich requires an up-front expenditure of $23 million. You estimatethat the investments will produce the following net cash flows:
| Year | Project A | Project B |
| 1 | $ 4,000,000 | | $20,000,000 | |
| 2 | 10,000,000 | | 10,000,000 | |
| 3 | 20,000,000 | | 8,000,000 | |
What are the two projects' net present values, assuming the costof capital is 5%? Do not round intermediate calculations. Roundyour answers to the nearest dollar.
Project A: $Â Â
Project B: $Â Â
What are the two projects' net present values, assuming the costof capital is 10%? Do not round intermediate calculations. Roundyour answers to the nearest dollar.
Project A: $Â Â
Project B: $Â Â
What are the two projects' net present values, assuming the costof capital is 15%? Do not round intermediate calculations. Roundyour answers to the nearest dollar.
Project A: $Â Â
Project B: $Â Â
What are the two projects' IRRs at these same costs of capital?Do not round intermediate calculations. Round your answers to twodecimal places.
Project A: Â Â Â Â Â %
Project B: Â Â Â Â Â %
