| Table Z |
Project A |
Project B |
| Initial Investment |
$50,000 |
$55,000 |
| Year |
Operating Cash Inflows |
Operating Cash inflows |
| 1 |
$15,000 |
$30,000 |
| 2 |
15,000 |
25,000 |
| 3 |
15,000 |
10,000 |
| 4 |
15,000 |
5,000 |
| 5 |
15,000 |
5,000 |
| Average |
$15,000 |
$15,000
|
Calculate the precise IRR for both projects. Please show all the calculations . Cost of the capital at 12%.