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Use the following information regarding two independent projects to answer the next two questions. Year Cash Flows (millions): Project A Cash Flows (millions): Project B

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Use the following information regarding two independent projects to answer the next two questions. Year Cash Flows (millions): Project A Cash Flows (millions): Project B 0 -100 -110 1 25 80 2 30 -10 3 75 -15 4 20 60 The required return for each project is 8%. Would project A be accepted if its evaluated based on its IRR? Yes No Managers would be indifferent between accepting and rejecting the project. Cannot be determined. Would project B be accepted if it's evaluated based on its MIRR? Yes No Managers would be indifferent between accepting and rejecting the project. Cannot be determined

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