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Zayas, LLC, has identified the following two mutually exclusive projects Cash Flow (A) Cash Flow (B) $59,000 35,000 29,000 20,500 13,800 $59,000 22,100 26,100 31,000
Zayas, LLC, has identified the following two mutually exclusive projects Cash Flow (A) Cash Flow (B) $59,000 35,000 29,000 20,500 13,800 $59,000 22,100 26,100 31,000 25,100 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 29.11 % 26.40 % If you apply the IRR decision rule, which project should the company accept? Project A b. Assume the required return is 15 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
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