Question: b. Consider the following two mutually exclusive funding projects: Project A Project B Year 0 $29,000 $33,000 Year 1 -$2,000 -$3,000 Year 2 -$4,000 -$5,000

b. Consider the following two mutually exclusive funding projects: Project A Project B Year 0 $29,000 $33,000 Year 1 -$2,000 -$3,000 Year 2 -$4,000 -$5,000 Year 3 -$7,000 -$9,000 Year 4 -$3,000 -$4,000 ($1,000 x Y) Year 5-8 -$12,000 -$16,000 i. What is the IRR for Project A and Project B? Based on this criterion, which project would you invest? (3 marks) ii. Over what range of discount rates would the company choose project A? (3 marks)

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