less than its life, can you definitively state the algebraic sign of the NPV? Why or why not? 10. Ed has to choose between Project A and Project B, which are mutually exclusive. Project A has an initial cost of $28,000 and an internal rate of return of 16 percent. Project B has an initial cost of $47,000 and an internal rate of return of 12 percent. Explain why the selection of the project with the higher internal rate of return could be a faulty decision. 11. Describe the concept of a risk premium. What is the risk-free rate