Calculate the NPV of these two projects

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Worldwide Widget Manufacturing, Inc., wants to add two new production lines of widgets. You’re asked to analyze whether to go forward with two mutually exclu¬sive projects. The cash flows of both projects are displayed below. Your company uses a cost of capital of 9 percent to evaluate projects such as the two you’re now analyzing. Show all calculations. Year: 0 1 2 3 4 5 Project A Cash Flow –$1,000 $150 $300 $500 $300 $250 Project B Cash Flow –$1,400 $300 $470 $200 $600 $350 Calculate the payback of Project A: Calculate the payback of Project B: Calculate the IRR of Project A: Calculate the IRR of Project B: Using the NPV method and assuming a cost of capital of 6 percent, calculate the NPV of these two projects. Which of these mutually exclusive projects should the company accept? can someone just please show me how to do the problems.

Reference no: EM131888329

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