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a . What is the IRR of each project? b . If the cost of capital is 7 % , which one will you choose?
a What is the IRR of each project?
b If the cost of capital is which one will you choose?
c If the cost of capital is which one will you choose?
d What is the cost of capital at which you are indifferent between the two projects?
e What is the range of interest rate in which you will prefer Project B over A and what is the range in which you will prefer Project A over B
f What is the range of interest rate in which you will reject both projects?
Mutually exclusive projects The following projects are offered to you. The annual cash flows are expected to continue forever.
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