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Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 29,100 -$ 29,100 1 14,500
Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 29,100 -$ 29,100 1 14,500 4,350 2 12.400 9,850 3 9,250 15,300 4. 5,150 16,900 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 18.79 % 17.55% 62 2. Using the IRR decision rule, which project should the company accept? Project A O Project B B- Is this decision necessarily correct? 3. Yes No b- If the required return is 12 percent, what is the NPV for each of these projects? (Do 1. not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A $ 17,300.00 Project B S 12,200.00 Print b- If the required return is 12 percent, what is the NPV for each of these projects? (Do 1. not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 0 ferences Project A Project B $ 17,300.00 $ 12,200.00 b- 2. Which 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 14.25%
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