a company is considering two mutually exclusive projects. Both require an initial cash outlay of Rs.20000 each, and have a life of five years. The company's required rate of return is 10% and pays tax...

a company is considering two mutually exclusive projects. Both require an initial cash outlay of Rs.20000 each, and have a life of five years. The company's required rate of return is 10% and pays tax at a 35% rate. The projects will be depreciated on a straight line basis.  The before taxes cash flows expected to be generated by the projects are as follows.  Before tax cash flows (Rs.)

Project A  - 1 2 3 4 5 is 8000  8000  8000  8000  8000

Project B - 1 2 3 4 5 is 12000 6000 4000 10000 10000

Calculate for each project : the NPV and the internal rate of return.  Which project should be accepted and why.