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ABC (from above) is currently evaluating two mutually exclusive projects. Project A has a time...

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Finance

ABC (from above) is currently evaluating two mutually exclusive projects. Project A has a time 0 equipment cost of $280,000 and is expected to return cash flows of $75,000 per year for the next 14 years. Project B has a time 0 equipment cost of $1,056,000 and is expected to return cash flows of $245,000 per year for the next 14 years.

a. What is the IRR for project A?

b. What is the IRR for project B?

c. What is the NPV for project A?

d. What is the NPV for project B?

e. Which project should ABC adopt?

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