10. The following figure shows the NPV profiles of two mutually exclusive projects A and B. Please use the figure to answer the following questions.

(1) Find the internal rate of return (IRR) for project A and project B, respectively.

(2) At what discount rate, you are indifferent between projects A and B, why?

(3) If the discount rate is 9%, which project should you take, why?

(4) If the discount rate is 14%, which project should you take, why?

(5) If the discount rate is 21%, which project should you take, why?

(6) If the discount rate is 23%, which project should you take, why?

NPV A Discount Rate 5% 22% 19% NPV A Discount Rate 5% 22% 19%