The following net cash flows are projected for two separate projects. Your required rate of...

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Accounting

The following net cash flows are projected for two separate projects. Your required rate of return is 12%.

Year Project A Project B

0 ($150,000) ($400,000)

1 $30,000 $100,000

2 $30,000 $100,000

3 $30,000 $100,000

4 $30,000 $100,000

5 $30,000 $100,000

6 $30,000 $100,000

a. Calculate the payback period for each project.

b. Calculate the NPV of each project.

c. Calculate the IRR of each project.

d. Which project(s) would you accept and why?

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