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Romboski, LLC , has identified the following two mutually exclusive projects: year Cash Flow(A) Cash Flow(B) 0 -54,000 -54,000 1 30,000 17,600 2 24,000 21,600
Romboski, LLC , has identified the following two mutually exclusive projects:
| year | Cash Flow(A) | Cash Flow(B) |
| 0 | -54,000 | -54,000 |
| 1 | 30,000 | 17,600 |
| 2 | 24,000 | 21,600 |
| 3 | 18,000 | 26,000 |
| 4 | 12,800 | 25,600 |
1. WHat is the IRR for each project?
2. Over what range of discounts rates would you choose project A and project B?
3. At what discount rate would you be indifferent between these two projects?
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