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6 Bruin, Inc., has identified the following two mutually exclusive projects: 20 Doints Year 0 1 2 3 4 Cash Flow (A) Cash Flow (B)

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6 Bruin, Inc., has identified the following two mutually exclusive projects: 20 Doints Year 0 1 2 3 4 Cash Flow (A) Cash Flow (B) -$29,800 -$29,800 15,200 4,700 13.100 10,200 9,600 16,000 5,500 17.600 Boo Reference a-1 What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % Project A Project B 94 a-2 Using the IRR decision rule, which project should the company accept? 6 a-2 Using the IRR decision rule, which project should the company accept? Project A Project B 20 points a-3 Is this decision necessarily correct? eBook References Yes No b-1 If the required return is 10 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) Project A Project B 6 b-2 which project will the company choose if it applies the NPV decision rule? Project A Project B c. At what discount rate would the company be indifferent between these two projects? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16) Discount rate

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