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Davenport, LLC, has identified the following two mutually exclusive projects: Year 0 Cash Flow (A) Cash Flow (B) -$90,500 -$90,500 48,000 21,500 39,000 38,000 32,000
Davenport, LLC, has identified the following two mutually exclusive projects: Year 0 Cash Flow (A) Cash Flow (B) -$90,500 -$90,500 48,000 21,500 39,000 38,000 32,000 48,000 21,000 45,000 2 3 4 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.) a-2.If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 10 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.) b-2.Which project will you choose if you apply the NPV decision rule? % % a-1. Project A Project B a-2. Project acceptance b-1. Project A Project B b-2. Project acceptance
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