Question: Here are the cash flows for two mutually exclusive projects: a. At what interest rates would you prefer project A to B? (Hint: Try drawing

Here are the cash flows for two mutually exclusive projects:

Here are the cash flows for two mutually exclusive projects: a.

a. At what interest rates would you prefer project A to B? (Hint: Try drawing the NPV profile of each project.)
b. What is the IRR of each project?

Project Co Ci C3 -$20,000 +$8,000 +$8,000 $ 8,000 0 25,000 -20,000 0

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