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4. (5 pts) Consider two investments with the following sequences of cash flows: Net Cash Flow Project A Project B 0 $150,000 -$120,000 30,000 25,000

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4. (5 pts) Consider two investments with the following sequences of cash flows: Net Cash Flow Project A Project B 0 $150,000 -$120,000 30,000 25,000 20,000 110,500 25,000 15,000 2 a) Compute the IRR for each investment. b) At a MARR = 15%, determine the acceptability of each project. c) If A and B are mutually exclusive projects, and you have to invest in one, which one would you select on the basis of the rate of return on incremental investment (AIRR)

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