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Mahjong, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $36,100 $36,100 1 18,800 6,200 2 14,300
Mahjong, Inc., has identified the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
0 | $36,100 | $36,100 |
1 | 18,800 | 6,200 |
2 | 14,300 | 12,700 |
3 | 11,800 | 19,200 |
4 | 8,800 | 23,200 |
Required: |
(a) | What is the IRR for Project A? |
(Click to select)20.32%21.58%22%20.95%19.9% |
(b) | What is the IRR for Project B? |
(Click to select)20.22%20.83%19.21%19.61%21.23% |
(c) | If the required return is 9 percent, what is the NPV for Project A? |
(Click to select)$8,103.16$8,956.12$8,273.75$8,785.53$8,529.64 |
(d) | If the required return is 9 percent, what is the NPV for Project B? |
(Click to select)$11,538.8$11,884.96$11,192.64$10,961.86$12,115.74 |
(e) | At what discount rate would the company be indifferent between these two projects? |
(Click to select)18.96%17.86%19.33%17.49%18.41% |
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