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P9-12 NPV versus IRR (LO1,5) Mahjong, Inc., has identified the following two mutually exclusive projects: Year 0 Cash Flow (A) -$36,800 19,150 14,650 Cash Flow
P9-12 NPV versus IRR (LO1,5) Mahjong, Inc., has identified the following two mutually exclusive projects: Year 0 Cash Flow (A) -$36,800 19,150 14,650 Cash Flow (B) -$36,800 6,670 13,170 19,670 23,670 2 3 12,150 4 9,150 Required: (a)What is the IRR for Project A? Click to select) (b)What is the IRR for Project B? (Click to select) (c) If the required return is 16 percent, what is the NPV for Project A? Click to select) (d) If the required return is 16 percent, what is the NPV for Project B? (Click to select) At what discount rate would the company be indifferent between these two projects (e) (i.e. what is the crossover rate)? Click to select)
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