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Bruin, Inc., has identified the following two mutually exclusive projects: Year ON Cash Flow (A) -$28,800 14,200 12,100 9,100 5,000 Cash Flow (B) -$28,800 4,200
Bruin, Inc., has identified the following two mutually exclusive projects: Year ON Cash Flow (A) -$28,800 14,200 12,100 9,100 5,000 Cash Flow (B) -$28,800 4,200 9,700 15,000 16,600 3 4 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-2 Using the IRR decision rule, which project should the company accept? Project A ID Project B a-3 Is this decision necessarily correct? Yes No b-1 If the required return is 11 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 b-2Which 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 1 %
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