Calculate the two projects NPVs and IRRs

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Reference no: EM131043483

Project Pavilion has a cost of $9,000 and is expected to produce benefits (cash flows) of $2500 per year for 5 years. Project Freedom costs $24,000 and is expected to produce cash flows of $6,400 per year for 5 years. Calculate the two projects’ NPVs, IRRs, and PIs assuming a cost of capital of 7%. Which project should be selected, assuming they are mutually exclusive, using each ranking method? Show your work.

Reference no: EM131043483

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