Question: . a. You are analyzing two mutually exclusive projects with the following cash flows: Year Project A Project B 0 -$6,000,000 -$6,000,000 1 $3,400,000 $1,000,000
. a. You are analyzing two mutually exclusive projects with the following cash flows:
| Year | Project A | Project B |
| 0 | -$6,000,000 | -$6,000,000 |
| 1 | $3,400,000 | $1,000,000 |
| 2 | $2,700,000 | $2,500,000 |
| 3 | $2,500,000 | $2,700,000 |
| 4 | $1,000,000 iii) What reinvestment rate assumptions are made by each of these rules? Show the NPV profiles of these projects with a graph in Excel. IRR Project A 26.51%
IRR Project B 18.29% | $3,400,000 |
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