Bruin, Inc., has identified the following two mutually exclusive projects:

Year Cash Flow

(A) Cash Flow (B)

0 $ 29,800 $ 29,800

1 15,200 4,700

2 13,100 10,200

3 9,600 16,000

4 5,500 17,600

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.)

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.)

b-2 Which 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.)