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Garage, Inc., has identified the following two mutually exclusive projects: Year Cash Flow A Cash Flow B 0 -$28,700 -$28,700 1 $14,100 $4,150 2 $12,000

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

Year Cash Flow A Cash Flow B
0 -$28,700 -$28,700
1 $14,100 $4,150
2 $12,000 $9,650
3 $9,050 $14,900
4 $4,950 $16,500

What is the IRR for each of these projects?

Project A: 17.84%

Project B: 17%

If the required return is 12 percent, what is the NPV for each of these projects?

NPV Project A: $3,042.70

NPV Project B: $3,789.83

At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Discount rate %: ?

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