1. Flint Fruits is considering two equally risky, mutually exclusive projects, Projects A and B, that have the following cash flows:

Year	Project A	Project B
0	-$100,000	-$100,000
1	60,000	30,000
2	25,000	15,000
3	60,000	80,000
4	30,000	62,000

1. What is the cost of capital that would make the two projects having the same NPV values?

(3 points)

2. Discuss why this cost of capital that would make two projects have the same NPV value would influence your decision to take project A or project B based on NPV versus IRR method? (3 points)