NPV vs. IRR (LO1, 5) Mahjong Inc. has identified the following two mutually exclusive projects: Ao Flujo de efectivo (A) Flujo de efectivo (B) 0 -$43000 -$43000 1 23000 7000 17900 13800 12400 24000 9400 26000 a) What is the IRR of each project? If the IRR decision rule applies, which project should the company accept? Is this decision necessarily correct? b) If the required return is 11%, what is the NPV of the two projects? Which project will you choose if you apply the NPV decision rule? c) In what interval of discount rates would you choose project A? Project B? At what discount rate would it be the same to choose between any of the two projects? explain. 23