11. Consider the following two mutually exclusive investments: Cash Flows (*) Projects Ca C C A -10,000 +12,000 +4,000 +11,784 -10,000 +10,000 +3,000 +12,830 B

(a) Calculate the NPV for each project assuming discount rates of 0, 5, 10, 20, 30 and 40 per cent;

(b) draw the NPV graph for the projects to determine their IRR,

(c) show calculations of IRR for each project confirming results in (b). Also, state which project would you recommend and why?