Here are the cash flows for two mutually exclusive projects: Project CO C1 C2 C3 A 30,800 +$12,200 +$12,200 +$ 12,200 В - 30,800 +38,700 a. Given the following interest rates (0%, 2%, 4%, 6%, 8%, 10%, 12%, 14%, 16%, 18%, 20%), above what interest rates would you prefer project A to B? Interest rates above b. What is the IRR of each project? (Round your answers to 2 decimal places.) Project A Project B IRR % %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Here are the cash flows for two mutually exclusive projects:
Project
CO
C1
C2
C3
$ 30,800
- 30,800
A
+$12,200
+$12,200
+$ 12,200
+38,700
a. Given the following interest rates (0%, 2%, 4%, 6%, 8%, 10%, 12%, 14%, 16%, 18%, 20%), above what interest rates would you prefer
project A to B?
Interest rates above
%
b. What is the IRR of each project? (Round your answers to 2 decimal places.)
Project A
Project B
IRR
%
Transcribed Image Text:Here are the cash flows for two mutually exclusive projects: Project CO C1 C2 C3 $ 30,800 - 30,800 A +$12,200 +$12,200 +$ 12,200 +38,700 a. Given the following interest rates (0%, 2%, 4%, 6%, 8%, 10%, 12%, 14%, 16%, 18%, 20%), above what interest rates would you prefer project A to B? Interest rates above % b. What is the IRR of each project? (Round your answers to 2 decimal places.) Project A Project B IRR %
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