Question: 3) Consider the following two mutually exclusive projects: Year 0 Year 1 Year 2 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow

 3) Consider the following two mutually exclusive projects: Year 0 Year

3) Consider the following two mutually exclusive projects: Year 0 Year 1 Year 2 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Year 3 Year 4 Discount Rate -100 -73 50 30 50 30 50 30 N/A 30 15 15 a) What is the NPV and IRR for each project? b) Which one would you choose and why

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