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Romboski, LLC, has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) -$ 65,000 34,000 27,000 21,000 17,000 Year -$ 65,000
Romboski, LLC, has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) -$ 65,000 34,000 27,000 21,000 17,000 Year -$ 65,000 19,000 25,000 29,000 34,000 O1234 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).) Internal rate of return Project A Project B (b) If you apply the IRR decision rule, which project should the company accept? (Click to select) + 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 2$ Project A Project B (b)Which project will you choose if you apply the NPV decision rule? (Click to select) 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).) (Click to select) + Project A (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).) (Click to select) + Project B (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 rate
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