Problem:
Please help figuring this problem out. Please show all formulas.
Project c0 c1 c2 c3
A -$20,000 +$8,000 +$8,000 +$8,000
B -$20,000 0 0 +$25,000
a. At what interest rates would you prefer project A to B? Hint: try drawing the NPV profile of each project.
b. What is the IRR of each project?