Question: Bruin, Inc., has identified the following two mutually exclusive projects: Time Cash Flow(A) Cash Flow (B) 0 $37,500 -$37,500 1 17,300 5,700 2 16,200 12,900
Bruin, Inc., has identified the following two mutually exclusive projects: Time Cash Flow(A) Cash Flow (B) 0 $37,500 -$37,500 1 17,300 5,700 2 16,200 12,900 3 13,800 16,300 4 7,600 27,500 a. What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept? Is this decision necessarily correct? b. If the required return is 11 percent, what is the NPV for each of these projects? Which project
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