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What are the two projects net present values

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Your division is considering two investment projects, each of which requires an up-front expenditure of $17 million. You estimate that the investments will produce the following net cash flows:

Year Project A Project B

1 $4,000,000 $20,000,000

2 10,000,000 10,000,000

3 20,000,000 6,000,000

What are the two projects' net present values, assuming the cost of capital is 5%? Do not round intermediate calculations. Round your answers to the nearest dollar.

Project A: $

Project B: $

What are the two projects' net present values, assuming the cost of capital is 10%? Do not round intermediate calculations. Round your answers to the nearest dollar.

Project A: $

Project B: $

What are the two projects' net present values, assuming the cost of capital is 15%? Do not round intermediate calculations. Round your answers to the nearest dollar.

Project A: $

Project B: $

What are the two projects' IRRs at these same costs of capital? Do not round intermediate calculations. Round your answers to two decimal places.

Project A: %

Project B: %

Reference no: EM132500868

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