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Bruin, Inc., has identified the following two mutually exclusive projects Year 0 Cash Flow (A) Cash Flow (B) -$30,000 -$30,000 2 3 4 15,400 13,300
Bruin, Inc., has identified the following two mutually exclusive projects Year 0 Cash Flow (A) Cash Flow (B) -$30,000 -$30,000 2 3 4 15,400 13,300 9,700 5,600 4,800 10,300 16,200 7,800 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 a-2Using the IRR decision rule, which project should the company accept? O Project A ProjectB a-3ls this decision necessarily correct? O Yes O No b-1 If the required return is 12 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.932.16.) Project A Project B b-2Which project will the company choose if it applies the NPV decision rule? O Project A O Project B c At what discount rate would the company be Indiferent 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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