Question: Brookheimer, LLC, has identified the following two mutually exclusive projects: Year Cash Flow Cash Flow (A) (B) - $110,000 -$110,000 51,000 30,000 38,000 33,000 35,000

Brookheimer, LLC, has identified the following two mutually exclusive projects: Year Cash Flow Cash Flow (A) (B) - $110,000 -$110,000 51,000 30,000 38,000 33,000 35,000 48,000 30,000 51,000 0 1 2 3 4 AWN a- What is the IRR for each of these projects? (Do not round 1. intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a- If you apply the IRR decision rule, which project should the 2. company accept? b- Assume the required return is 9 percent. What is the NPV for each 1. of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b- Which project will you choose if you apply the NPV decision rule? 2. 2 % a-1. Project A Project B a-2. Project acceptance % delde % a-1. Project A Project B a-2. Project acceptance b-1. Project A Project B b-2. Project acceptance c- Over what range of discount rates would you choose Project A? (Do 1. not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) C- Over what range of discount rates would you choose Project B? (Do 2. not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) C- At what discount rate would you be indifferent between these two 3. projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) an interest rate of Project A Project B Indifferent interest rate % 1% an interest rate of %
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