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Consider the following two mutually exclusive projects: C 0 C 1 C 2 C 3 Project A -100 +60 +60 0 B -100 0 0

Consider the following two mutually exclusive projects:

C₀ C₁ C₂C₃

Project A -100 +60 +60 0

B -100 0 0 +140

A. Calculate the IRR for both project A and B.

B What project would you accept if the required rate of return is 10%.

Please explain the concepts and formulas so I can solve other problems like this one.

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