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1. What is the internal rate of return of project A? 2. What is the internal rate of return of project B? 3. Which project

1. What is the internal rate of return of project A?

2. What is the internal rate of return of project B?

3. Which project would you choose based on the IRR rule?

A. no answer given

B. Project B

C. Project A

4. For which discount rate should the firm be indifferent between the 2 projects?

5. Based on this information, which project would you choose if the applicable discount rate was 7.39%?

A. no answer given

B. Project B

C. Project A

A firm is considering the following 2 mutually exclusive projects: Note: The IRRs for this question will require Excel (or a financial calculator)

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