Question: #1 EXPECTED NET CASH FLOWS: Year Project A Project Project B 0 )$400 $650 1 )528 210 2 )219 210 3) 150 210 4) 1,100

EXPECTED NET CASH FLOWS:

Year Project A Project Project B

0 )$400 $650

1 )528 210

2 )219 210

3) 150 210

4) 1,100 210

5 ) 820 210

6) 990 210

7) 325 210

A) What is each projects IRR?

B) If each projects cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?

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