Consider the following two mutually exclusive projects:

Cash Flows ($)

Project A : C0= -100 C1= 60 C2 = 60 C3 = 60

Project B C0 = -100 C1= 0 , C2=0 C3= 208.35

A. Calculate the NPV of each project for a discount rate of 14%.

B. What is approximately the IRR for each project individually?

C.Use the IRR method to determine which of the projects you should accept (describe the correct decision rule describing when you pick A versus B based on what discount rate).