Question: Bruin, Inc., has identified the following two mutually exclusive projects Year O-NM Cash Flow (A) -$28.000 13,400 11,300 8,700 4,600 Cash Flow (B) -$28.000 3,800

Bruin, Inc., has identified the following two mutually exclusive projects Year O-NM Cash Flow (A) -$28.000 13,400 11,300 8,700 4,600 Cash Flow (B) -$28.000 3,800 9,300 14,200 15.800 4 a-1 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.) % Project A Project B % a-2 Using the IRR decision rule, which project should the company accept? Project A Project B a-3 Is this decision necessarily correct? Yes No b-1 If the required return is 10 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.) 3 b-1 If the required return is 10 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.) Project A Project B b-2Which project will the company choose if it applies the NPV decision rule? Project A Project B c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Discount rate %
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