Problem 1 - Mutually Exclusive Choices The required rate of return (discount rate) is 20%. Our firm evaluates two mutually exclusive projects A and B. Their cash flows are given in the following table. If the IRR of project A is 33.33%, what is the cash flow of the project in year 1? 2. Which project should be selected?

\begin{tabular}{c|cc} Year & A & B \\ \hline 0 & 3,000 & 4,000 \\ 1 & ?? & 5,333 \end{tabular}