Exercise $5$:

We present you with two investment projects, $x$ and $Y.$ Both projects have equal initial investments with

equal durations and cash flows paid at the same time. However, the significant cash flows of one of the

projects occur earlier than those of the other. Consider the net present values of projects X and Y calculated

using the four discount rates:

a$)$ What is the Internal Rate of Return $($IRR$)$ of Project X$?$ Explain your answer.

b$)$ What is the discount rate that makes the two projects equivalent? Explain your answer.

c$)$ Which project has the lowest average cash flow? Explain your answer.