Question: Consider the following two mutually exclusive projects: Cash Flows ($ millions) ProjectC 0 C 1 C 2 C 3 A-200+110+120 0 B-20000+250 A . Calculate

Consider the following two mutually exclusive projects:

Cash Flows ($ millions)

ProjectC₀C₁C₂ C₃

A-200+110+120 0

B-20000+250

A. Calculate IRR for A, IRR for B, and the cross-over rate of the two projects.

B. What is the range of the discount rate (to calculate NPV) that A should be chosen; and what is the range of the discount rate that B should be chosen?

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