3. You are analyzing the following two mutually exclusive projects and have developed the following information. Please calculate the IRRs for the two projects and the crossover rate. Which project should you accept if the cost of capital is 5%, and which project should you accept if the cost of capital is 10%?

YEAR	CASH FLOW A	CASH FLOW B
0	-$84,500	-$76,900
1	$29,000	$25,000
2	$40,000	$35,000
3	$27,000	$26,000

IRR A:

IRR B:

Crossover Rate:

If WACC=5%, accept _______

If WACC=10%, accept _______