Question: 1.Garage, Inc., has identified the following two mutually exclusive projects. Assume that the required return is 9 percent. Year Cash Flow (A) Cash Flow (B)

1.Garage, Inc., has identified the following two mutually exclusive projects. Assume that the required return is 9 percent.

Year

Cash Flow (A)

Cash Flow (B)

0:

-50,000

-80,000

1:

23,000

22,000

2:

25,000

24,000

3:

26,000

12,000

4:

7,000

45,000

What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept?

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