Consider the following table for two projects' expected cashflows.

Project A -35,000 18,000 18,000 20,000

Project B -35,000 0 25,000 37,500

a.Using payback analysis, which project is preferable?__________________

b.Given a required rate of return of 14%, which project would you prefer?_____________

c.If the required rate was 9.5%, would you change your stance?_________________

d.What is the IRR of each project?__________________________________