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A business is evaluating mutually exclusive projects A and B, which have cash flows as shown below: Table of cash flows Project A Project B

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A business is evaluating mutually exclusive projects A and B, which have cash flows as shown below: Table of cash flows Project A Project B Year Cash Flow Year Cash Flow O $ (13,500) o $ (25,725) 1 $ 5,250 1 $ 9,875 2 $ $ 6,750 2 $ 7,250 3 $ 3,500 3 $ 6,500 4 $ 3,000 4 $ 11,150 Your analysts have determined, and you have confirmed, that Project A has an IRR of 15.76%, and Project B has an IRR of 13.07%. If your required rate of return is 10%, which project or projects, if any, should you undertake? Project A Project B Both Projects A and B ONeither Project A nor B

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