Question: Two mutually exclusive projects have projected cash flows as follows: END OF YEAR 0 1 2 3 4 Project A Project B -$2,000 2,000 $1,000

 Two mutually exclusive projects have projected cash flows as follows: END

Two mutually exclusive projects have projected cash flows as follows: END OF YEAR 0 1 2 3 4 Project A Project B -$2,000 2,000 $1,000 0 $1,000 0 $1,000 0 $1,000 6,000 . a. Determine the internal rate of return for each project (For A, choose from 20.6%, 34.9% and 40.5%; For B, choose from 31.6%, 42.5% and 46.3%) b. Determine the net present value for each project at discount rates of 20 and 32 percent. c. Which project would you select? Why? What assumptions are inherent in your decision

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