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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 NPV versus IRR LO
Parkalien Inc. has identified the following two mutualy exclusive projects:
a What is the for each of these projects? Do not round intermediate calculations. Round the final answers to decimal
places.
a Using the decision rule, which project should the company accept?
Praject A
Praject
a Is this decision necessarily correct?
Yes
No
b If the required return is what is the NPV for each of these projects? Do not round intermediate calculations. Round the final
answers to decimal places. Omlit $ sign in your response.
b Which project will the company choose if it applies the NPV decision rule?
Project A
Project
c At what discourt rate would the compary be indifferent between these two projects? Do not round intermediate calculations.
Round the final answer to decimal places.
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