EFG Consulting has two project proposals. The expected cash flows are given below. The required...

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Accounting

EFG Consulting has two project proposals. The expected cash flows are given below. The required rate of return is 15%.

Year

Project A1

Project B1

0

-$400,000

-$450,000

1

$120,000

$130,000

2

$130,000

$140,000

3

$140,000

$150,000

4

$150,000

$160,000

a. Calculate the IRR for each project. b. Determine the NPV and indicate which project should be selected.

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