Consider the cash flows for the following mutually exclusive new assembly line projects (all $ in 1000):

Year 0: Project A: -$1000 Project B:-$1000 Project C:-$2000

Year 1: Project A: $900 Project B: $600 Project C: $900

Year 2: Project A: $500 Project B: $500 Project C: $900

Year 3: Project A: $100 Project B: $500 Project C: $900

Year 4: Project A: $50 Project B: $100 Project C: $900

Your companys MARR is 15%. Your company requires internal rate of return analysis. Your project team has already correctly calculated each projects individual internal rate of return as: Project A, Internal Rate of Return = 35.73% Project B, Internal Rate of Return = 32.19% Project C, Internal Rate of Return = 29.75%

a) Can any projects be eliminated based on their IRR? Why or why not.

b) Compare all projects remaining based on the proper IRR method for comparing mutually exclusive projects. Which project would you select based on IRR analysis and why?