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Your division is considering two investment projects, each of which requires an up-front expenditure of $23 million

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Your division is considering two investment projects, each of which requires an up-front expenditure of $23 million. You estimate that the investments will produce the following net cash flows:

Year Project A Project B

1 $ 5,000,000 $20,000,000

2 10,000,000 10,000,000

3 20,000,000 8,000,000

1. What are the two projects' net present values, assuming the cost of capital is 5%?

Project A: $  

Project B: $  

2.What are the two projects' net present values, assuming the cost of capital is 10%? Do not round intermediate calculations.

Project A: $  

Project B: $  

3.What are the two projects' net present values, assuming the cost of capital is 15%? Do not round intermediate calculations.

Project A: $  

Project B: $  

4.What are the two projects' IRRs at these same costs of capital? Do not round intermediate calculations.

Project A:     %

Project B:     %