Question: Question 3 (13 points) Quantech Inc. has identified the following two mutually exclusive projects, A and B: Year AwNro. Cash flow A -$15,000 $5,000 $6,000

Question 3 (13 points) Quantech Inc. has identified the following two mutually exclusive projects, A and B: Year AwNro. Cash flow A -$15,000 $5,000 $6,000 $7,000 $2,200 Cash flow B -$15,000 $2,200 $7,000 $6,000 $6,000 a. (5 points) What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? b. (5 points) If the required return is 11%, what is the NPV for each of these projects? What project will you choose if you apply the NPV decision rule? c. (3 points) If you apply the NPV decision rule, at what discount rate would you be indifferent between the two projects
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