Question: Here are the cash flows for two mutually exclusive projects: Project C 0 C 1 C 2 C 3 A $ 23,600 +$ 9,400 +$
Here are the cash flows for two mutually exclusive projects:
| Project | C0 | C1 | C2 | C3 | |||||||||||
| A | $ | 23,600 | +$ | 9,400 | +$ | 9,400 | +$ | 9,400 | |||||||
| B | 23,600 | 0 | 0 | + | 29,700 | ||||||||||
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?
Interest rates above % ?
What is the IRR of each project? (Round your answers to 2 decimal places.)
IRR PROJECT A % ?
IRR PROJECT B % ?
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