Garage, Inc., has identified the following two mutually exclusive projects:

Year	Cash Flow (A)				Cash Flow (B)
0	$	28,100			$	28,100
1		13,500				3,850
2		11,400				9,350
3		8,750				14,300
4		4,650				15,900

a	What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places)

	IRR
Project A	[ ] %
Project B	[ ] %

b	Using the IRR decision rule, which project should the company accept?
	( ) Project A ( ) Project B

c.	Is this decision necessarily correct? (Yes/No)

d.	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)

	NPV
Project A	$ [ ]
Project B	$ [ ]

b-2	Which project will the company choose if it applies the NPV decision rule?
	( ) Project A ( ) Project B

c.	At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places)

Discount rate

[ ] %