Question: Consider the following three projects: Year 1 2 3 4 5 6 Project A -$10,000 $6,000 $6,000 $6,000 $6,000 $6,000 Project B -$1,000 -$1,000 -$1,000

Consider the following three projects: 

Year 1 2 3 4 5 6 Project 

A -$10,000 $6,000 $6,000 $6,000 $6,000 $6,000 Project 

B -$1,000 -$1,000 -$1,000 -$1,000 -$1,000 $28,000 Project 

C -$20,000 $0 $0 $0 $0 $50,000 

 

Create a report that investigates which project should be chosen based on an interest rate of 9%, and a 20%. You should assume compound interest. 

Also, include a discussion on the IRR for each project. What does the IRR imply?

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