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Problem 9 - 1 2 NPV versus IRR ( LO 1 , 5 ) Parkalien Inc. has identified the following two mutualy exclusive projects: a

Problem 9-12 NPV versus IRR (LO1,5)
Parkalien Inc. has identified the following two mutualy exclusive projects:
a-1. What is the 199 for each of these projects? (Do not round intermediate calculations. Round the final answers to 2 decimal
places.]
a-2. Using the 19 decision rule, which project should the company accept?
Praject A
Praject B
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. Omlit $ 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 discourt rate would the compary be indifferent between these two projects? (Do not round intermediate calculations.
Round the final answer to 2 decimal places.)
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