You have a choice between two mutually exclusive investments. If you require a 14% return, at what rate of return would you be indifferent between the two investments?

		A		B
	Year		Cash Flow		Cash Flow
	0		-$150,000		-$120,000
	1		50,000		72,000
	2		90,000		50,000
	3		70,000		40,000

A) 14.00%

B) 15.98%

C) 17.85%

D) 18.74%

E) None of the above

A project costs $13,000 to initiate. Cash flows are estimated as $2,750 a year for the first two years and $3,500 a year for the next three years. The discount rate is 11%. The net present value for this project is _____ and the internal rate of return is _________ the discount rate.

A) -$2,138.52; more than

B) -$2,138.52; less than

C) -$1,348.75; more than

D) -$1,348.75; less than

E) None of the above