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Requirement 3 Please. Cash Flow (A) Cash Flow (B) -578.500 43.000 29,000 23.000 21,000 -578.500 21.000 28,000 34.000 41,000 Requirement 1 (a) What is the
Requirement 3 Please.
Cash Flow (A) Cash Flow (B) -578.500 43.000 29,000 23.000 21,000 -578.500 21.000 28,000 34.000 41,000 Requirement 1 (a) What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Project A Project B Internal rate of return 20.70 % 18.72 % (b) If you apply the IRR decision rule, which project should the company accept? Project A Requirement 2 (a) Assume the required return is 11 percent. What is the NPV for each of these projects? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Net present value Project A Project B 14,426 54 15,012.82 (b)Which project will you choose if you apply the NPV decision rule? Requirement 3 (a) Over what range of discount rates would you choose Project A? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Project A Above (b) Over what range of discount rates would you choose Project B? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g.,32.16).) Project B Below (c) At what discount rate would you be indifferent between these two projects? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Discount rateStep by Step Solution
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