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-------------------- Please answer both parts correctly and I will rate thumbs up thank you! Management of Blossom Automotive, a manufacturer of auto parts, is considering

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image text in transcribedPlease answer both parts correctly and I will rate thumbs up thank you!

Management of Blossom Automotive, a manufacturer of auto parts, is considering investing in two projects. The company typically compares project returns to a cost of funds of 17.00 percent. Year 0 1 Project 1 - $455,652 270,000 99,000 112,500 126,000 Project 2 $503,331 105,750 163,170 219,700 251,050 2 3 4 Compute the IRRs based on the cash flows. Which project(s) will be accepted? (Round final answer to 2 decimal places, e.g. 15.25%.) The IRR of project 1 is % and the project should be The IRR of project 2 is % and the project should be 4 Management of Pharoah Measures, Inc., is evaluating two independent projects. The company uses a 11.68 percent discount rate for such projects. The costs and cash flows for the projects are shown in the following table. Year o 1 2 Project 1 - $9,004,499 3,268,090 1,930,390 1,300,300 1,199,200 1,315,280 1,662,240 1,335,290 Project 2 - $12,692,842 2,153,530 3,818,790 3,395,680 4,522,900 4,808,780 3 4 5 6 7 a. What are the IRRs for the projects? (Round final answer to 2 decimal places, e.g. 15.25%.) The IRR of Project 1 is %, and the IRR of Project 2 is %. b. Does the IRR criterion indicate a different decision than the NPV criterion? Management of Blossom Automotive, a manufacturer of auto parts, is considering investing in two projects. The company typically compares project returns to a cost of funds of 17.00 percent. Year 0 1 Project 1 - $455,652 270,000 99,000 112,500 126,000 Project 2 $503,331 105,750 163,170 219,700 251,050 2 3 4 Compute the IRRs based on the cash flows. Which project(s) will be accepted? (Round final answer to 2 decimal places, e.g. 15.25%.) The IRR of project 1 is % and the project should be The IRR of project 2 is % and the project should be 4 Management of Pharoah Measures, Inc., is evaluating two independent projects. The company uses a 11.68 percent discount rate for such projects. The costs and cash flows for the projects are shown in the following table. Year o 1 2 Project 1 - $9,004,499 3,268,090 1,930,390 1,300,300 1,199,200 1,315,280 1,662,240 1,335,290 Project 2 - $12,692,842 2,153,530 3,818,790 3,395,680 4,522,900 4,808,780 3 4 5 6 7 a. What are the IRRs for the projects? (Round final answer to 2 decimal places, e.g. 15.25%.) The IRR of Project 1 is %, and the IRR of Project 2 is %. b. Does the IRR criterion indicate a different decision than the NPV criterion

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