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complete all parts Bruin, Inc., has identified the following two mutually exclusive projects: Year WNO 1 2 3 4 Cash Flow (A) -$28.400 13,800 11,700
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Bruin, Inc., has identified the following two mutually exclusive projects: Year WNO 1 2 3 4 Cash Flow (A) -$28.400 13,800 11,700 8,900 4.800 Cash Flow (B) -$28,400 4,000 9,500 14,600 16,200 a-1 What is the IRR for each of these projects? (Do not round Intermediate calcula and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. ProjectA Project B % % a-2 Using the IRR decision rule, which project should the company accept? O Project A O Project B a-3 Is this decision necessarily correct? Yes b-1 If the required return is 12 percent, what is the NPV for each of these projects? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) Project A Project B b-2Which project will the company choose If it applies the NPV decision rule? O 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 % Step by Step Solution
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