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You were asked to decide whether to accept or to reject one of the two following mutually exclusive projects ( note: you can accept only

You were asked to decide whether to accept or to reject one of the two following mutually exclusive projects (note: you can accept only one, but not both projects):
The projects will pay the following cash flows at the end of each year:
Year Project A Project B
0-150-190
16010
23010
33075
43080
52060
62025
7105
A) What are the Internal Rates of Return for Project A and Project B?
B) Assume that the required rates of return for both projects are identical, but the only thing you know is that the discount rate is a value between 8.0% and 10.0%. Can your answer in part (A) help you determine which project, if any, should be undertaken? Why or why not?
C) Assume, instead, that the required return for both projects is 6%. Which project, if any, should be undertaken and why?
D) Assume, instead, that the required return for both projects is 6%, but a project can be undertaken only if it pays back in 3 years or faster. Which project, if any, should be undertaken and why?

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