Question: c. Consider two competing, (very) long-term, and ambitious starship projects, U and Q, whose cash flow patterns look like the following: Year 0 1

c. Consider two competing, (very) long-term, and ambitious starship projects, U and

c. Consider two competing, (very) long-term, and ambitious starship projects, U and Q, whose cash flow patterns look like the following: Year 0 1 2 n Project U -U U U U U Project Q -Qo Q Q Q Q Note: three dots between 2 and n above denote Years 3, 4, 5, and so on until Year n - 1. Thus, the project's cash flows display the following properties: - both projects have the same length, n years; each project has conventional cash flows (a single cash outflow in Year 0 and all cash inflows afterwards; each project has equal cash inflows from Year 1 through Year n. You are also given the following information: U U > Q Qo Which project has a higher IRR? Show why or how.

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