Highland Outpatient Center is evaluating two investment projects, each of which requires an up-front expenditure of $1.5 million. The projects are expected to produce the following ne cash inflows:
Year Project A Project B
1 $500,000 $2,000,000,
2 $1,000,000 $1,000,000
3 $2,000,000 $600,000
1. What is each project's IRR?
2. What is each project's NPV, if the cost of capital is:
a. 10%
b. 5%
c. 15%