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

Year Cash Flow $($A$)$ Cash Flow $($B$)$

$0$$$29,000$$$29,000$

$114,4004,300$

$212,3009,800$

$39,20015,200$

$45,10016,800$

a$.$ What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept? Is this decision necessarily correct?

b$.$ b$.$ If the required return is $11\%,$ what is the NPV for each of these projects? Which project will the company choose if it applies the NPV decision rule?

c$.$ Over what range of discount rates would the company choose Project A$?$ Project B$?$ At what discount rate would the company be indifferent between these two projects? Explain.