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This is one question! Zayas, LLC, has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) Year 0 -$57,000 33,000 27,000
This is one question!
Zayas, LLC, has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) Year 0 -$57,000 33,000 27,000 19,500 13,400 -$57,000 0,300 24,300 29,000 25,300 2 a. 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.g., 32.16.) Internal rate of return Project A Project B 27.46 % 25.00 % If you apply the IRR decision rule, which project should the company accept? Project A b. Assume the required return is 13 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.) Net present value Project A Project B Which project will you choose if you apply the NPV decision rule? (Click to select) c. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Step by Step Solution
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