Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent....

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Crane Corp. management is evaluating two mutually exclusiveprojects. The cost of capital is 15 percent. Costs and cash flowsfor each project are given in the following table. Year Project 1Project 2 0 -$1,266,016 -$1,209,606 1 263,000 345,000 2 358,000345,000 3 416,000 345,000 4 547,000 345,000 5 721,000 345,000Calculate NPV and IRR of two projects. (Enter negative amountsusing negative sign, e.g. -45.25. Do not round discount factors.Round other intermediate calculations and final answer to 0 decimalplaces, e.g. 1,525. Round IRR answers to 2 decimal places, e.g.15.25 or 12.25%.) NPV of project 1 is $ NPV of project 2 is $ IRRof project 1 is % IRR of project 2 is % Which project should beaccepted? Crane Corp. should accept

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Project 1 Net present value is solved using a financial calculator The steps to solve on the financial calculator Press the CF button CF0 1266016 It is entered with a negative sign since it is a cash outflow Cash flow for all the years should be entered Press Enter and down arrow after inputting each cash flow After entering the last cash flow press the NPV button and enter the cost of capital of See Answer

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Crane Corp. management is evaluating two mutually exclusiveprojects. The cost of capital is 15 percent. Costs and cash flowsfor each project are given in the following table. Year Project 1Project 2 0 -$1,266,016 -$1,209,606 1 263,000 345,000 2 358,000345,000 3 416,000 345,000 4 547,000 345,000 5 721,000 345,000Calculate NPV and IRR of two projects. (Enter negative amountsusing negative sign, e.g. -45.25. Do not round discount factors.Round other intermediate calculations and final answer to 0 decimalplaces, e.g. 1,525. Round IRR answers to 2 decimal places, e.g.15.25 or 12.25%.) NPV of project 1 is $ NPV of project 2 is $ IRRof project 1 is % IRR of project 2 is % Which project should beaccepted? Crane Corp. should accept