Question: Here are the cash flows for two mutually exclusive projects: Project C 0 C 1 C 2 C 3 A $ 27,200 +$ 10,800 +$

Here are the cash flows for two mutually exclusive projects:

Project C0 C1 C2 C3
A $ 27,200 +$ 10,800 +$ 10,800 +$ 10,800
B 27,200 0 0 + 34,200

a. Given the following interest rates (0%, 2%, 4%, 6%, 8%, 10%, 12%, 14%, 16%, 18%, 20%), above what interest rates would you prefer project A to B?

b. What is the IRR of each project? (Round your answers to 2 decimal places.)

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