Question: Question 1 10 Points Consider the following mutually exclusive projects: C3 Project A Co -100,000 -100,000 -100,000 C5 0 Cash flows C2 0 +30,000 +20,000

 Question 1 10 Points Consider the following mutually exclusive projects: C3

Question 1 10 Points Consider the following mutually exclusive projects: C3 Project A Co -100,000 -100,000 -100,000 C5 0 Cash flows C2 0 +30,000 +20,000 C1 +100,000 +30,000 +20,000 C4 o +30,000 +20,000 0 +30,000 +20,000 B 0 +20,000 (a) If the discount rate is 8%, which project(s) have a positive Net Present Value (NPV)? (b) How would the results in question (a) change if the discount rate was 5%? (c) What is the payback period for each project? (d) What is the internal Rate of Return (IRR) for each project? (e) Which project(s) would a firm accept? Explain fully. a format our

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