Question: Teddy Bear is choosing between the following two projects: Project A Project B Year 3,500 -2,300 1,800 900 2 2,400 1,600 3 1,900 1,400 a.

 Teddy Bear is choosing between the following two projects: Project A

Teddy Bear is choosing between the following two projects: Project A Project B Year 3,500 -2,300 1,800 900 2 2,400 1,600 3 1,900 1,400 a. If the appropriate interest rate is 30%, which project should Teddy accept based on IRR rule? b. If the appropriate interest rate is 30%, which project should Teddy accept based on PI Index

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