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Parkallen Inc. has identified the following two mutually exclusive projects: 32 Year 1 2 Cash Flow (A) 535,825 16,925 15,e3e 11,930 7,830 Cash Flow (B)

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Parkallen Inc. has identified the following two mutually exclusive projects: 32 Year 1 2 Cash Flow (A) 535,825 16,925 15,e3e 11,930 7,830 Cash Flow (B) -$35,825 6,909 12,400 17,890 19,920 8 004201 0-1. What is the IRR for each of these projects? (Do not round Intermediate calculations. Round the final answers to places.) IRR Project A Project B 0-2. Using the IRR decision rule, which project should the company accept? R. O Project A Project B 2-3. Is this decision necessarily correct? 32 Yes O No OX74243 b-1. If the required return is 11%, what is the NPV for each of these projects? (Do not round intermediate calculations. RC answers to 2 decimal places. Omit S sign in your response:) NPV Project A Project B b-2. Which project will the company choose if it applies the NPV decision rule? O Project A O Project B c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calcul Round the final answer to 2 decimal places.) Discount rate

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