Question: Here are the cash flows for two mutually exclusive projects: Project C 0 C 1 C 2 C 3 A $ 20,000 + $ 8,000

Here are the cash flows for two mutually exclusive projects:

Project C0 C1 C2 C3
A $ 20,000 + $ 8,000 + $ 8,000 + $ 8,000
B 20,000 0 0 + 25,000

a. At what interest rates would you prefer project A to B? (For computation, consider all even discount rates from 2% to 20% range.)

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

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