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Garage, Inc., has identified the following two mutually exclusive projects YearCash Flow (A) Cash Flow (B) -$ 29,800 $ 29,800 4,700 10,200 16,000 17,600 15,200

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Garage, Inc., has identified the following two mutually exclusive projects YearCash Flow (A) Cash Flow (B) -$ 29,800 $ 29,800 4,700 10,200 16,000 17,600 15,200 13,100 9,600 5,500 2 4 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? Project A Project B a-3 Is this decision necessarily correct? O Yes 0 b-1 If the required return is 10 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your anwers 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? O 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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