Question: You are offered the following two projects: D Year 2 1 2 3 A Project A Project B B C Year 0 Year 1

You are offered the following two projects: D Year 2 1 2 3 A Project A Project B B C Year 0 Year 1 -100 0 50

You are offered the following two projects: D Year 2 1 2 3 A Project A Project B B C Year 0 Year 1 -100 0 50 -75 0 0 E Year 3 172.8 0 a. What is the IRR of Project A? b. What is the IRR of Project B? c. If your cost of capital is 10%, which project should you choose?

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