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Parkallen Inc. has identified the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) 0 -$32, 150 1 15,560 2 13,560 3 10.460

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Parkallen Inc. has identified the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) 0 -$32, 150 1 15,560 2 13,560 3 10.460 4 6,360 -$32,150 5,500 11,000 16,400 18, 240 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

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