Use the following information for Questions 1 through 3: Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows:

EXPECTED NET CASH FLOWS:
Year	Project A	Project B
0	$ (400)	$ (650)
1	$ (528)	$ 210
2	$ (219)	$ 210
3	$ (150)	$ 210
4	$ 1,100	$ 210
5	$ 820	$ 210
6	$ 990	$ 210
7	$ (325)	$ 210

1. (a) What is each projects IRR? (b) If each projects cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?

3. What is the crossover rate, and what is its significance?