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Garage, Inc., has identified the following two mutually exclusive projects: Cash Flow Year Cash Flow (A) (B) 29,400 29,400 14,800 4,500 12,700 10,000 9,400 15,600

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Garage, Inc., has identified the following two mutually exclusive projects: Cash Flow Year Cash Flow (A) (B) 29,400 29,400 14,800 4,500 12,700 10,000 9,400 15,600 5,300 17,200 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? O Project A O Project B a-3 ls this decision necessarily correct? O Yes No 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.) NPV Project A Project B b-2 which project will the company choose if it applies the NPV decision rule? O Project A O 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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