Parkallen Inc. has identified the following two mutually exclusive projects:

Year	Cash Flow (A)				Cash Flow (B)
0	$	35,300			$	35,300
1		16,730				6,700
2		14,820				12,200
3		11,720				17,600
4		7,620				19,680

a-1. What is the IRR for each of these projects? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

	IRR
Project A	%
Project B	%

a-2. Using the IRR decision rule, which project should the company accept?

• Project A

• Project B

a-3. Is this decision necessarily correct?

• Yes

• No

b-1. If the required return is 11%, what is the NPV for each of these projects? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)

	NPV
Project A	$
Project B	$

b-2. Which project will the company choose if it applies the NPV decision rule?

• Project A

• Project B

c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Discount rate %