A company has the following 2 projects: Projects C0 C1 C2 C3 A -36 20 20 20 B -50 25 25 25 Assume that the discount rate is 10%. How much is the difference between the NPV values of these 2 projects (i.e., NPV of Project A minus NPV of Project B)? A) 0.57 B) 1.57 C) 3.67 D) 4.67 E) 13.17

A company uses Internal Rate of Return (IRR) criteria to analyze the following two mutually exclusive projects:

Project	C0	C1	C2	C3
NorthEast	-1100	1000	350	50
SouthWest	-1100	0	300	1500

Assume that this companys opportunity cost of capital (i.e., Hurdle rate for IRR analysis) is 10%. Then,

1. which project should be accepted based on IRR analysis?
2. how much is the IRR of this accepted project?

(i) (ii)

A) Project NorthEast 20%

B) Project SouthWest 19%

C) Project SouthWest 30%

D) Project SouthWest 26%

E) Project NorthEast 24%