**.** Two *mutually exclusive* projects have projected cash flows as follows:

YEAR

PROJECT A

PROJECT B

0

Ksh. -2m

Ksh. -2m

1

1m

0

2

1m

0

3

1m

0

4

1m

6m

**Required:**

**a)** Determine the internal rate of return for each project. **[2 Marks]**

**b)** Determine the net present value for each project at discount rates of 0, 5,10,20,30, and 35 percent. **[2 Marks]**

**c)** Plot a graph of the net present value of each project at the different discount rates. **[2 Marks]**

**d)** Which project would you choose? Why? **[ 2 Marks]**

**e)** What is each projectâ€™s MIRR if the cost of capital is 12 percent?