Bruin, Inc. has identified the following mutually exclusive projects.

		0	1	2	3	4
Cash Flows	Project A	($37,500)	$17,300	$16,200	$13,800	$7,600
	Project B	($37,500)	$5,700	$12,900	$16,300	$27,500

a. What is the IRR for each of these projects?

b. Which project should be selected under the IRR rule?

c. If the required return for each project were 11%, what is the NPV of each project.

d. Which project should be selected under the NPV rule?

e. How would you reconcile this conflict in project selection?