EXPECTED NET CASH FLOWS:
Year Project A Project Project B
0 )−$400 −$650
1 )−528 210
2 )−219 210
3) −150 210
4) 1,100 210
5 ) 820 210
6) 990 210
7) −325 210
A) What is each project’s IRR?
B) If each project’s cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?