Consider the following two projects:

Project	Year 0 CF	Year 1 CF	Year 2 CF	Year 3 CF	Year 4 CF	Cost of capital
A	-120	50	50	60	10	10%
B	-93	50	30	30	30	10%

5) The IRR of project A =?

A) 17.75%

B) 17.67%

C) 17.41%

D) 17.98%

6) The IRR of project B =?

A) 21.63%

B) 20.84%

C) 22.29%

D) 17.72%

7) Which of the following statements is correct?

A) Accept project A since its IRR > 10%.

B) Reject project B since its NPV > 0.

C) Accept project A since its NPV < 0.

D) Accept project B since its IRR < 10%.

8) The maximum number of IRRs that can be found for project B is:

A) 3

B) 1

C) 2

D) 0

9) The crossover rate is:

A) 7.61%

B) 5.35%

C) 5.82%

D) 6.33%