Question
Parkallen Inc. has identified the following two mutually exclusive projects. Year e Cash Flow (A) -$29,525 Cash Flow (B) -$29,525 01234 14,595 4,500 12,510
Parkallen Inc. has identified the following two mutually exclusive projects. Year e Cash Flow (A) -$29,525 Cash Flow (B) -$29,525 01234 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? b-1. If the required return is 11%, what is the NPV for each of these projects? b-2. Which project will the company choose if it applies the NPV decision rule? c. At what discount rate would the company be indifferent between these two projects? b-1. If the required return is 11%, what is the NPV for each of these projects?
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Fundamentals Of Corporate Finance
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
6th Edition
0072553073, 9780072553079
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