Question: A firm is considering the following 2 mutually exclusive projects: Year Project A -43.1 0 Project B -82.1 35 1 25 2 25 38 3

A firm is considering the following 2 mutually exclusive projects: Year

A firm is considering the following 2 mutually exclusive projects: Year Project A -43.1 0 Project B -82.1 35 1 25 2 25 38 3 19 42 4 30 39 Note: The IRRs for this question will require Excel (or a financial calculator). What is the internal rate of return of project A? % What is the internal rate of return of project B? % Which project would you choose based on the IRR rule? O(No answer given) OProject B Project A For which discount rate should the firm be indifferent between the 2 projects? %. Based on this information, which project would you choose if the applicable discount rate was 17.95%

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