Analyze the cash flows for two proposed projects, Project A and Project B. Each project has a cost of $10,000, and the desired rate of return for each project is 12%. Expected cash flows are:YearProject AProject B0($10,000)($10,000)1$6,500$3,5002$3,000$3,5003$3,000$3,5004$1,000$3,500The IRR for Project A is 18% while for Project B is 15%.After analyzing the cash flow data for both projects, assess the following:1. Calculate each projectAcâ¬?cs Net Present Value (NPV)2. Identify the project that is the best option, if only one project can be selected. Give reasons for your choice.Please include detailed calculations when identifying the NPV.
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