You are considering the following two projects and can take only one. Your cost of capital is

10.5%.

The cash flows for the two projects are as follows ($ million):

LOADING...

.

a. What is the IRR of each project?

b. What is the NPV of each project at your cost of capital?

c. At what cost of capital are you indifferent between the two projects?

d. What should you do?

Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Project Year 0 Year 1 Year 2 Year 3 A - $98 $24 $29 $40 B - $98 $48 $40 $29 Done Print Year 4 $48 $21 Xx