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3. (15 points Trees Inc. has identified the following two mutually exclusive projects Cash Flow Cash Flow Year (A) (B) 0 - 37500 -37500 1

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3. (15 points Trees Inc. has identified the following two mutually exclusive projects Cash Flow Cash Flow Year (A) (B) 0 - 37500 -37500 1 17300 5700 2 16200 12900 3 13800 16300 + 7600 27500 IRR for each project Using IRR decision rule, which project should the company this decision correct? birthe requirod return what is the NPV for each of these projects? Which project will the company choose it applies the NPV rule? c. Over what range of discount rates would the company choose Project A? Project B? At what discount rate would the company be indifferent between the two projects? Explain

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