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Garage, Inc., has identified the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 2 8

Garage, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B)0$ 28,500$ 28,500113,9004,050211,8009,55038,95014,70044,85016,300 a-1 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, e.g.,32.16.) IRR Project A % Project B % a-2 Using the IRR decision rule, which project should the company accept? multiple choice 1 Project A Project B a-3 Is this decision necessarily correct? multiple choice 2 Yes No b-1 If the required return is 11 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.) NPV Project A $ Project B $ b-2 Which project will the company choose if it applies the NPV decision rule? multiple choice 3 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, e.g.,32.16.) Discount rate %

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