The net cash flow per year for the investment projects A and B, is presented in the table below.  Expected Net Cash Flow ($) Project 0 1 2 3 4 A -10,000 6500 3000 3000 1000 B -10,000 3500 3500 3500 3500 Calculate the NPV, IRR, PI, and PVR for the cash flows given in the following table. Assume the minimum  acceptable rate of return of 8%. Which projects should be accepted if they are independent projects?  Would the selection of the projects change if the cost of capital were 12%?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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The net cash flow per year for the investment projects A and B, is presented in the table below. 
Expected Net Cash Flow ($)

Project 0 1 2 3 4
A -10,000 6500 3000 3000 1000
B -10,000 3500 3500 3500 3500

Calculate the NPV, IRR, PI, and PVR for the cash flows given in the following table. Assume the minimum 
acceptable rate of return of 8%. Which projects should be accepted if they are independent projects? 
Would the selection of the projects change if the cost of capital were 12%? 

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