There are two mutually exclusive projects. Project A requires $480,000 initial investment and is expected to provide $120,000 additional net cash inflows each year for 5 years. Project B requires $950,000 initial investment and is expected to provide $200,000 additional net cash inflows each year for 5 years. Which project should you accept according to IRR method if your cost of capital is 5%

Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?