1.Bruin, Inc., has identified the following two mutually exclusive projects:

Year

Cash Flow (A)

Cash Flow (B)

0

-$36,500

-$36,500

1

18,820

6,400

2

14,320

12,900

3

11,820

19,400

4

8,820

23,400

a.What is the IRR for Project A?

b.What is the IRR for Project B?

c.If the required return is 13 percent, what is the NPV for Project A?

d.If the required return is 13 percent, what is the NPV for Project B?

e.At what discount rate would the company be indifferent between these two projects?