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?

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Item 1

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?

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.