Question: Cash flow ($) Year Project A Project B 0. -$11,800 -$9,400 1 4,600 2,500 2 5,400 6,900 3 4,200 3,800 Calculate the rate of return

Cash flow ($) Year Project A Project B 0. -$11,800 -$9,400 1 4,600 2,500 2 5,400 6,900 3 4,200 3,800 Calculate the rate of return for projects A and B

1. Project rate of return A= 10%

The rate of return of project B= 20%

2. The project rate of return A= 13%

The rate of return of project B= 17.92%

3. Project rate of return A= 10%

The rate of return of project B= 17.92%

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