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Parkallen Inc. has identified the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) (B) 0 -$31,625 -$31,625 1 15,365 5,300 2 13,350
Parkallen Inc. has identified the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) (B) 0 -$31,625 -$31,625 1 15,365 5,300 2 13,350 10,800 3 10,250 16,200 4 6,150 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.) 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
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