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Bruin, Incorporated, has identified the following two mutually exclusive projects: Cash Flow ( A ) Year 0 = - 2 9 , 1 0 0
Bruin, Incorporated, has identified the following two mutually exclusive projects: Cash Flow A Year Year Year Year Year Cash Flow B Year Year Year Year Year aWhat is the IRR for each of these projects? Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg aUsing the IRR decision rule, which project should the company accept? Project A Project B aIs this decision necessarily correct? Yes No bIf the required return is percent, what is the NPV for each of these projects? Do not round intermediate calculations and round your answers to decimal places, eg bWhich project will the company choose if it applies the NPV decision rule? Project A Project B cAt 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 decimal places, eg
Bruin, Incorporated, has identified the following two mutually exclusive projects:
Cash Flow A
Year
Year
Year
Year
Year
Cash Flow B
Year
Year
Year
Year
Year
aWhat is the IRR for each of these projects? Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
aUsing the IRR decision rule, which project should the company accept?
Project A
Project B
aIs this decision necessarily correct?
Yes
No
bIf the required return is percent, what is the NPV for each of these projects? Do not round intermediate calculations and round your answers to decimal places, eg
bWhich project will the company choose if it applies the NPV decision rule?
Project A
Project B
cAt 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 decimal places, eg
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