Problem $4,\_$Question $1$

While discount rates are at $10\%$ for every maturity, you evaluate $2$ investment projects with the following cash flows:

Project A has an IRR of $36\%,$ while project B has an IRR of $39\%.$ If the two projects are mutually exclusive, which project$($s$)$ should you accept?

a$.$ Project $A$

b$.$ Accept both

c$.$ Reject both

d$.$ Project BQuestion $18$

Problem $4,\_$Question $2$

While discount rates are at $10\%$ for every maturity, you evaluate $2$ investment projects with the following cash flows:

Project A has an IRR of $36\%,$ while project B has an IRR of $39\%.$ Suppose you have a budget of $$2,000$ and you can take any project multiple times,

which project$($s$)$ should be included in your proposal?

a$.$ Neither project $A,$ nor project $B$

b$.$ Only project B

c$.$ Project A and Project B

d$.$ Only project A