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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