Question: Project A and project B are mutually exclusive projects with conventional cashflows. Project A has an internal rate of return (IRR) of 12%. Project B

Project A and project B are mutually exclusive projects with conventional cashflows. Project A has an internal rate of return (IRR) of 12%. Project B has an internal rate of return (IRR) of 17%. Three companies are interested in investing the projects. The cost of capital of each company is given below:

Company

Cost of capital

Mango

9%

Kiwi

15%

Cherry

19%

Company mango / kiwi / cherry should accept ( project a, project b, both project, neither project, require more information to decision making)

Mango :

Kiwi :

Cherry :

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