and Project B$,$ graphed against the interest rate that is used to calculate their net present

values, which you may know as NPV$.$ I$\text{'}$m going to ask you a few questions about this

graph, so please pay close attention:

A$.$ What are the internal rates of return $($IRRs$)$ for the two projects?

B$.$ If these two projects are mutually exclusive, which project should be done? Explain

your answer.

C$.$ If these two projects are not mutually exclusive, which project should be done?

Explain your answer.

D$.$ Why is it that the NPV curve usually declines as the interest rate increases?

E$.$ Given your answer for part A$,$ what the heck is going on with Project A$?$ Why is it so

weird? Weird project. So weird.