1. Your division is condering two projects with following net cash flows (in millions):
0 1 2 3
Project A -$30 $10 $15 $22
Project B -$25 $15 $14 $11
What are prjects' IRRs assuming the WACC is 5%?
a) IRR(A)= 23.97%, IRR(B)= 29.49%
b) IRR(A)=22.74%, IRR(B)=29.49%
c) IRR(A)=23.97%, IRR(B)= 25.99%
d) IRR(A)=22.74%, IRR(B)=25.99%
2. In the movie Inside Job what happened to government regulators?