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Bruin, Incorporated has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 41,300 $ 41,300 1 19,100 6,300

Bruin, Incorporated has identified the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 $ 41,300 $ 41,300
1 19,100 6,300
2 17,800 14,200
3 15,200 17,900
4 8,400 30,300

a-1. What is the IRR for each of these projects?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

a-2. If you apply the IRR decision rule, which project should the company accept?

b-1. Assume the required return is 11 percent. What is the NPV for each of these projects?

Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

b-2. Which project will you choose if you apply the NPV decision rule?

Bruin, Incorporated has identified the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 $ 41,300 $ 41,300
1 19,100 6,300
2 17,800 14,200
3 15,200 17,900
4 8,400 30,300

a-1. What is the IRR for each of these projects?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

a-2. If you apply the IRR decision rule, which project should the company accept?

b-1. Assume the required return is 11 percent. What is the NPV for each of these projects?

Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

b-2. Which project will you choose if you apply the NPV decision rule?

image text in transcribed

c-1. Over what range of discount rates would you choose Project A?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

c-2. Over what range of discount rates would you choose Project B?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

c-3. At what discount rate would you be indifferent between these two projects?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

image text in transcribed

NEED HELP ANSWERING PART C!!

\begin{tabular}{|l|l|l|l|l|l|} \hline c-1. & Project A & Above & an interest rate of & & % \\ \hline c-2. & Project B & Below & an interest rate of & & % \\ \hline c-3. & Indifferent interest rate & & % & & \\ \hline \end{tabular}

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