Pls correctly help thanks all NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 12%, has estimated its cash flows as shown in the following table:a. Calculate the NPV of each project, and assess its acceptability.b. Calculate the IRR for each project, and assess its acceptability.a. The NPV of project A is $. (Round to the nearest cent.)According to the NPV method, is project A acceptable? (Select the best answer below.)○ YesΟ NoData tableThe NPV of project B is $(Round to the nearest cent.)(Click on the icon here in order to copy the contents of the data table belowinto a spreadsheet.)Is project B acceptable on the basis of NPV? (Select the best answer below.)○ Yes○ Nob. The IRR of project A is ☐ %. (Round to two decimal places.)Initial investment(CF)Project A$120,000Project B$106,000Year (t)Cash inflows (CF₂)1$15,000$55,0002$20,000$40,0003$45,000$35,0004$50,000$10,0005$65,000$25,000Is project A acceptable on the basis of IRR? (Select the best answer below.)○ Yes○ NoPrintDoneThe IRR of project B is ☐ %. (Round to two decimal places.)Is project B acceptable on the basis of IRR? (Select the best answer below.)○ Yes○ No- X

Net Present Value (NPV) is a financial metric that measures the difference between the present value…

NPV and IRR analysis of projects Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 12%, has estimated its cash flows as shown in the following table: a. Calculate the NPV of each project, and assess its acceptability. b. Calculate the IRR for each project, and assess its acceptability. a. The NPV of project A is $. (Round to the nearest cent.) According to the NPV method, is project A acceptable? (Select the best answer below.) ○ Yes O No The NPV of project B is $☐ (Round to the nearest cent.) Is project B acceptable on the basis of NPV? (Select the best answer below.) ○ Yes O No b. The IRR of project A is ☐ %. (Round to two decimal places.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial investment Project A $120,000 Project B $106,000 (CF) Year (t) Cash inflows (CF₂) 1 $15,000 $55,000 2 $20,000 $40,000 3 $45,000 $35,000 4 $50,000 $10,000 5 $65,000 $25,000 Is project A acceptable on the basis of IRR? (Select the best answer below.) ○ Yes O No Print Done The IRR of project B is %. (Round to two decimal places.) Is project B acceptable on the basis of IRR? (Select the best answer below.) O Yes No - X

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P