Problem 9-12 NPV versus IRR (LO1, 5) Garage, Inc., has identified the following two mutually exclusive projects: Year 0 528,300 Cash Flow Cash Flow (A) (B) 28,300 $ 13,700 3,950 11,600 9,450 8,850 14,500 4.750 16.100 1 2 3 4 a-1 What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % Project A Project B % a-2 Using the IRR decision rule, which project should the company accept? Project A Project B a-3 Is this decision necessarily correct? O Yes b-1 If the required return is 10 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) NPV Project A Project B b-2 Which project will the company choose if it applies the NPV decision rule? Project A O Project B c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Discount rate