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Here's a graph showing the net present value of two projects, cleverly named Project A and Project B , graphed against the interest rate that

Here's a graph showing the net present value of two projects, cleverly named Project A and Project B, graphed against the interest rate that is used to calculate their net present values, which you may know as NPV. I'm going to ask you a few questions about this graph, so please pay close attention:
A. What are the internal rates of return (IRRs) for the two projects?
B. If these two projects are mutually exclusive, which project should be done? Explain your answer.
C. If these two projects are not mutually exclusive, which project should be done? Explain your answer.
D. Why is it that the NPV curve usually declines as the interest rate increases?
E. Given your answer for part A, what the heck is going on with Project A? Why is it so weird? Weird project. So weird.
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