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(Related to Checkpoint 11.1, Checkpoint 11.3, and Checkpoint 11.4) (Net present value, profitability index, and...

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Accounting

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(Related to Checkpoint 11.1, Checkpoint 11.3, and Checkpoint 11.4) (Net present value, profitability index, and internal rate of return calculations) You are considering two independent projects, Project A and Project B. The initial cash outlay associated with Project A is $55,000 and the initial cash outlay associated with Project B is $64,000. The discount rate on both projects is 11.4 percent. The expected annual cash flows from each project are as follows: Year Project A Project B 0 $(55,000) S(64.000) 1 11,000 12,000 2 11,000 12.000 3 11,000 12,000 4 11,000 12,000 5 11.000 6 11,000 12,000 (Click on the icon in order to copy its contents into a spreadsheet.) 12,000 Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted or not. a. The NPV of Project A is $. (Round to the nearest cent.) The NPV of Project Bis $ . (Round to the nearest cent.) b. The Pl of Project Ais . (Round to two decimal places.) The Pl of Project B is (Round to two decimal places.) c. The IRR of Project Ais %. (Round to two decimal places.) The IRR of Project B is%. (Round to two decimal places.) d. Should the projects be accepted or not? (Select the best choice below.)

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