Zayas, LLC, has identified the following two mutually exclusive projects:

Year	Cash Flow (A)				Cash Flow (B)
0		$	51,000			$	51,000
1			27,000				14,900
2			21,000				18,900
3			16,500				23,000
4			12,200				25,900

a. What is the IRR for each of these projects?

	Internal rate of return
Project A	____________%
Project B	____________%

If you apply the IRR decision rule, which project should the company accept? Project B or Project A b. Assume the required return is 10 percent. What is the NPV for each of these projects?

	Net present value
Project A	____________$
Project B	____________$

Which project will you choose if you apply the NPV decision rule? Project A or Project B c. Over what range of discount rates would you choose Project A? Project A Below or Above? _________% Over what range of discount rates would you choose Project B? Project B Above or Below? _________%

At what discount rate would you be indifferent between these two projects? Discount rate_________%