Mutually Exclusive Investments. The Wan-Ki Manufacturing Company must decide between investment projects A and B, which are mutually exclusive. The data on these projects are as follows (in thousands...

Mutually Exclusive Investments. The Wan-Ki Manufacturing Company must decide between investment projects A and B, which are mutually exclusive. The data on these projects are as follows (in thousands of dollars):

Cash Flows, per Year

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Project                 0              1              2              3              4

A             (100)      $120.00

B             (100)                                                     $193.80

(a) For each project, compute the NPV at 12 percent cost of capital, and the IRR. (b) Explain why the rankings conflict. Recommend which project should be chosen.