Given below are the NPV of crop A and crop B calculated with different discount rates.

Discount Rate	20%	21%	22%	23%	24%
Crop A	3.94	2.21	0.52	-1.11	-2.71
Crop B	4.66	3.21	1.81	0.45	-0.87

You don't need to calculate IRR to answer the following three questions.

7. The IRR of growing crop A must be within the range of . (Hint: Based on the table above, find the lower and upper bounds that contain the IRR. Answer the question by indicating the range, for example, 21-22%.)

8. The IRR of growing crop B must be within the range of . (Hint: Same as for part 7.)

9. Based on the IRR rule, Tropical Plantation should grow crop . (Answer A or B.)

Answer rating: 100% (QA)

To find the range within which the Internal Rate of Return IRR of growing crop A and crop B must lie ... View the full answer