What is the internal rate of return of each project


Problem: Here are the cash flows for two mutually exclusive projects:

Project Co 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 poject A to B?

b. What is the Internal Rate of Return of each project?

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