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I need help with requirment 3: Romboski, LLC, has identified the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (B) $67,000 $67,000
I need help with requirment 3:
Romboski, LLC, has identified the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (B) $67,000 $67,000 43,000 29,300 37,000 33,300 24,500 39,000 15,400 24,300 Requirement 1: (a) What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answer as a percentage roundedto 2 decimal places (e.g., 32.16).) Internal rate of return Project A 34.72 Project B 31.33 (b) If you apply the IRR decision rule, which project should the company accept? Project A Requirement 2 (a) Assume the required return is 13 percent. What is the NPV for each of these projects? (Do not round intermediate calculations.Round your answers to 2 decimal places (e.g., 32.16).) Net present value Project A 26,454.36 Project B 26.940.59 (b) Which project will you choose if you apply the NPV decision rule? Project BStep by Step Solution
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