Problem:
Here are the cash flows for two mutally exclusive projects:
Project A: Co : -20,000 C1: +8,000 C2: +8000 C3: +8000
Project B: C0: -20,000 C1: 0 C2: 0 C3: +25,000
a. At what interest rates would you prefer project A to B?
b. What is the IRR of each project?