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Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 36,300 -$ 36,300 1 18,600 6,400
Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 36,300 -$ 36,300 1 18,600 6,400 2 14,100 12.900 3 11,600 19,400 4. 8,600 23,400 a. What is the IRR for Project A? IRR 19.75% b. What is the IRR for Project B? IRR 20.60% c. If the required return is 11 percent, what is the NPV for Project A? NPV $ 6,047.54 d. If the required return is 11 percent, what is the NPV for Project B? NPV $ 9,535.11 e. At what discount rate would the company be indifferent between these two projects? Discount rate
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