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

. 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 project’s MIRR if the cost of capital is 12 percent?