C1. (Investment criteria) Nassau Manufacturing Company is considering two capital budgeting
projects with a cost of capital of 15% and the expected cash flows shown here.
a. Calculate the NPV and IRR for each project.
Which project(s) should Nassau accept, assuming they are:
b. Independent?
c. Dependent (both or neither are required)?
d. Mutually exclusive?
YEAR 0 1 2 3 4 5
Project A −100 25 30 40 30 25
Project B −50 10 15 25 15 15
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