1. "Consider the following cash flows for projects A and B. Assume the firm can only select one of the projects. What is the MARR such that the firm is indifferent between selecting project A or B? Enter your answer as a percent between 0 and 100, rounded to the nearest tenth of a percent. You might consider an incremental approach. Project A (for n = 0 through 4) $ : -11,000 8,400 6,485 1,750 740 IRR : 32.7% Project B (for n = 0 through 4) $ : -5,080 3,723 3,243 1,750 740 IRR : 41.1%"

2.

"The initial investment for a project is $134,000. The project will last for 4 years and can be salvaged for $20,100 at the end of 4 years. The annual expenses for the project are $7,200 in year 1 and increase at an annual rate of 9% in each year of the project. Assume the annual revenue remains the same in each of the 4 years. What does the annual revenue need to be in order for the internal rate of return of the project to equal 15.3%? "