Question: Use the project cash flows for the two mutually exclusive projects shown below to answer the following two questions. Time Project A Cash Flow Project

 Use the project cash flows for the two mutually exclusive projects

Use the project cash flows for the two mutually exclusive projects shown below to answer the following two questions. Time Project A Cash Flow Project B Cash Flow -$850 200 200 200 200 200 200 200 -$725 100 250 250 200 100 100 100 4 13-30 IRR Applicability For what range of possible interest rates would you want to use IRR to choose between these two projects? For what range of rates would you NOT want to use IRR? (LG13-5)

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