1. Consider the cash flows of two mutually exclusive projects in the table below:

Year	Project A	Project B
0	$5,000	$3,000
1	$1,794	$1,000
2	$2,780	$1,500
3	$2,186	$2,000
4	$2,618	$2,500

1. Calculate the net present value of each project if the annual discount rate is 7%. Which project should be preferred?
2. Calculate the net present value of each project if the annual discount rate is 13%. Which project should be preferred?
3. Calculate the internal rate of return of each project and their crossover rate. Then state the correct decision rule based on the internal rate of return analysis.