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Parkallen Inc. has identified the following two mutually exclusive projects: Cash Flow Year (A) 0 -$31,625 1 15,365 2 13,350 3 10,250 6,150 Cash Plow

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Parkallen Inc. has identified the following two mutually exclusive projects: Cash Flow Year (A) 0 -$31,625 1 15,365 2 13,350 3 10,250 6,150 Cash Plow (3) -$31,625 5,300 10, 800 16.200 18,000 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 Projects a-2. Using the IRR decision rule, which project should the company accept? O Project A O Project B a-2. Using the IRR decision rule, which project should the company accept? Project A O Project B a-3. Is this decision necessarily correct? Yes No b.1. If the required return is 19% 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 Project b-2. Which project will the company choose if it applies the NPV decision rule? 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.) NEV Project Project a b-2. Which project will the company choose If it applies the NPV decision rule? Project A O Project 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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