Question: 6. Here are the cash flows for two mutually exclusive projects: Project Co C C -25,000 +8,000 +8,000 A -25,000 +0 B +0 a)

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

6. Here are the cash flows for two mutually exclusive projects: Project Co C C -25,000 +8,000 +8,000 A -25,000 +0 B +0 a) What is the IRR of each project? Explain what IRR value means. b) What is NPV of each project when the discount rate is 5%? c) Results from part a) and b) are not consistent. Explain why. C3 +8,000 +0 C4 +8,000 +35,00 0

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