A) I am considering two mutually exclusive 3-year projects. Project A requires an investment in equipment of $150,000 and will produce net income of $20,000 per year. Project B requires an investment in equipment of $120,000 and produces operating cash flows of $56,000 per year. The firm uses straight-line depreciation and depreciates all assets to zero. At what discount rate would I be indifferent between the two projects?

a. 17.92% b. 18.91% c. 19.46% d. 21.02%

B) If the IRR for project A was 20.22% and the IRR for project B was 18.91%, what would the correct answer be?