Question
I just need c gave the other info in case you needed it !!!!!! Garage, Inc., has identified the following two mutually exclusive projects: Year
I just need c gave the other info in case you needed it !!!!!!
Garage, Inc., has identified the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B) 0 $ 28,900 $ 28,900 1 14,300 4,250 2 12,200 9,750 3 9,150 15,100 4 5,050 16,700
a. What is the IRR for each of these projects?
IRR
Project A % 18.4
Project B % 17.4
b. If the required return is 10 percent, what is the NPV for each of these projects? () NPV Project A $ Project B $ b-2 Which project will the company choose if it applies the NPV decision rule?
Project A 4,506.24
Project B 5,772.47
c. At what discount rate would the company be indifferent between these two projects?
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