1) Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Lithium, Inc.'s required rate of return for these projects is 10%. The internal rate of return for Project B is

Group of answer choices

a) 30.79%.

b) 35.27%.

c) 29.74%.

d) 36.77%.

2) Which of the following statements is MOST correct?

Group of answer choices

a) If a project's internal rate of return (IRR) exceeds the required return, then the project's net present value (NPV) must be negative.

b) A project with a NPV = 0 is not acceptable.

c) The IRR calculation implicitly assumes that all cash flows are reinvested at a rate of return equal to the IRR

d) If Project A has a higher IRR than Project B, then Project A must also have a higher NPV