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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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