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Problem 9-12 NPV versus IRR (LO1,5) Bruin, Inc., has identified the following two mutually exclusive projects: Year 0 Cash Flow (A) -$29700 15.100 13.000 9.550
Problem 9-12 NPV versus IRR (LO1,5) Bruin, Inc., has identified the following two mutually exclusive projects: Year 0 Cash Flow (A) -$29700 15.100 13.000 9.550 5.450 Cash Flow B -$29700 4650 10.150 15.900 17.500 a-1 What is the IRR for each of these projects? Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e... 32.16.) 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? Yes No D-1f the required return is 12 percent, what is the NPV for each of these projects? (Do not found intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B Which project will the company choose fit applies the NPV decision rule? Project A Project B C. At what discount rate would the company be indifferent between these two projects? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e... 32.16) Discount rate
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