Consider investments A and B with cash flows given below

n	A	B
0	-30000	-30000
1	2000	11000
2	6000	10000
3	10000	10000
4	24000	8000
5	26000	5000

a) Find the IRR for each investment.

b) Find the incremental IRR, i.e., find IRR for B-A.

c) Plot the present worth of the cash flows of A and of B as a function of the interest rate, i.e., consister interest rates 5%,10%,15%,, 40%. Identify the interest rate at which the two project have the same present worth. Observe that this interest rate is the same value as computed from the incremental IRR analysis.