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Analytical questions (20 points) Two mutually exclusive projects have projected cash flows as END OF YEAR 4 Project A -1000 400 400 400 Project EB

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Analytical questions (20 points) Two mutually exclusive projects have projected cash flows as END OF YEAR 4 Project A -1000 400 400 400 Project EB 1000 5,000 a. Determine the internal rate of return for each project. b. Which project would you select? Why? What assumptions are inf your decision? (PVIF20%,4)-0.482 (PVIFA8%, 1 5)-8.560 (PVIFA20%,4)-2.589 (PVI FA25%,4)-2.362 44

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