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Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) -$29,700 15,100 13,000 9,550 5,450 Cash Flow (B) -$29,700 4,650 10,150
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) -$29,700 15,100 13,000 9,550 5,450 Cash Flow (B) -$29,700 4,650 10,150 15,900 17,500 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? O Project A O Project B 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.g., 32.16.) Project A Project B b-2Which project will the company choose if it applies the NPV decision rule? O 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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