Question: QUESTION 8 Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Project CF CF CF CF CF Cost

QUESTION 8 Consider the following two projects: Year 0 Year 1 Year

QUESTION 8 Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Project CF CF CF CF CF Cost of capital A -110 50 50 60 10 15% B -73 30 30 30 30 15% The IRR of project B is 21.6% 23.3% 42.9% 7.7%

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