Refer to Present Value Tables. A company is considering two modifications to its current manufacturing process. The after-tax cash flows associated with the two investments are: $\begin{array}{lrr}
\text { Year } & \text { Project I } & \text { Project II } \
\hline 0 & \$(37,500) & \$(150,000) \
1 & -- & 91,075 \
2 & \$ 50,460 & 91,075
\end{array}$ The company's cost of capital is 12%.
Required:
A. Calculate the net present value for each investment.
B. Calculate the internal rate of return for each investment.
C. Which project is better? Explain your reasoning.

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The Answer of Refer to Present Value Tables. A company is considering two modifications to its current manufacturing process. The after-tax cash flows associated with the two investments are: $\begin{array}{lrr}
\text { Year } & \text { Project I } & \text { Project II } \
\hline 0 & \$(37,500) & \$(150,000) \
1 & -- & 91,075 \
2 & \$ 50,460 & 91,075
\end{array}$ The company's cost of capital is 12%.
Required:
A. Calculate the net present value for each investment.
B. Calculate the internal rate of return for each investment.
C. Which project is better? Explain your reasoning.

Refer to Present Value Tables The Company's Cost of Capital Is 12