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Bruin, Inc., has identified the following two mutually exclusive projects: Year o 1 2 3 4 Cash Flow (A) Cash Flow (B) -$29,200 -$29,200 14,600

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Bruin, Inc., has identified the following two mutually exclusive projects: Year o 1 2 3 4 Cash Flow (A) Cash Flow (B) -$29,200 -$29,200 14,600 4,400 12,500 9,900 9,300 15,400 5,200 17,000 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 Project B a-3 Is this decision necessarily correct? 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 b-2Which project will the company choose if it applies the NPV decision rule? Project A Project B c. At what discosnt 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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