Question: (Domination) Suppose two competing projects have cash flows of the form \(\left(-A_{1}, B_{1},\right.\), \(B_{1}, \ldots, B_{1}\) ) and \(\left(-A_{2}, B_{2}, B_{2}, \ldots, B_{2}\right)\), both with the same length and \(A_{1}, A_{2}, B_{1}, B_{2}\) all positive. Suppose \(B_{1} / A_{1}>B_{2} / A_{2}\). Show that project 1 will have a higher IRR than project 2 .

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