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Mahjong, Inc., has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) -$37,300 19,660 15,170 12,660 9,660 Cash
Mahjong, Inc., has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) -$37,300 19,660 15,170 12,660 9,660 Cash Flow (B) -$37,300 7,180 13,680 20,160 24,160 Required: (a) The IRR for Projects A and B is 22.56 percent and 21.75 percent respectively. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g. 32.16)) (b) of the required return is 11 percent, the NPV for Projects A and B is $ and $ respectively. You will choose Project B if you apply the NPV decision rule. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g.. 32.16)) (c) At a discount rate of percent you would be indifferent between these two projects. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g. 32.16))
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