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What are the two project npv

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Your division is considering two investment projects, each of which requires an up-front expenditure of $20 million. You estimate that the investments will produce the following net cash flows:

Year                Project A             Project B

1                     $3,500,000          $10,000,000

2                     14,600,000          14,800,000

3                     20.000.000          4,500,000

a. What are the two project's NPVs assuming the cost of capital is 4%, 11%, 18%?

b. What are the two projects' IRRs at those same costs of capital?

Reference no: EM132459671

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