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1- The capital budgeting director of Sparrow Corporation is evaluating a project which costs $100,000, is expected to last for 20 years and produce $12,500

1- The capital budgeting director of Sparrow Corporation is evaluating a project which costs $100,000, is expected to last for 20 years and produce $12,500 per year.What is the project's IRR?

2- Two projects being considered are mutually exclusive and have the following projected cash flows:

Year012345

Project A-$400460100100100100

Project B-$400505050480480

At what rate do the NPV profiles of Projects A and B cross?

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