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	-100	40	50	60	10	15%
B	-73	30	30	30	30	15%

The IRR of project A =? maybe round this one to the closest?

A) 7.7%

B) 21.6%

C) 23.3%

D) 42.9%

The IRR of project B =?

A) 21.6%

B) 23.3%

C) 42.9%

D) 7.7%

Which of the following statements is correct?

A) Accept project A since its IRR > 15%.

B) Reject project B since its NPV > 0.

C) Accept project A since its NPV < 0.

D) Accept project B since its IRR < 15%.

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

A) 3

B) 1

C) 2

D) 0

The crossover rate is:

A) 27.65%

B) 15.31%

C) 20.58%

D) 33.26%