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Question 10: Romboski, LLC, has identified the following two mutually exclusive projects:YearCash Flow (A)Cash Flow (B)0-$65,000-$65,000134,00019,000227,00025,000321,00029,000417,00034,000a.What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? Is this decision necessarily correct?
Accept A according to this measure.b.If the required return is 11 percent, what is the NPV for each of these projects? Which project will you choose if you apply the NPV decision rule?c.Over what range of discount rates would you choose Project A? Project B? At what discount rate would you be indifferent between these two projects? Explain.