Parkallen Inc. has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow Cash Flow (A) (B) -$29,525 -$29,525 14,595 4,500 12 ,510 10,000 9,410 15,400 5,310 17,040 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? O Proiect A O Project B a-3. Is this decision necessarily correct? O Yes O 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 S 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 proiects? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Discount rate %

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