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    Net Present Value vs. Internal Rate of Return (#19) for cash flows of 2 projects

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    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?

    Please show all work.

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    https://brainmass.com/business/internal-rate-of-return/net-present-value-vs-internal-rate-of-return-19-for-cash-flows-of-2-projects-42658

    Solution Preview

    a. At what interest rates would you prefer poject A to B?
    Let Payment = 8000
    FV = -25000
    PV = 0
    Number of periods = 3
    compute Rate = 4.11%
    Then if Rate < 4.11%, the PV of ...

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