Question: Bruin, Inc., has identified the following two mutually exclusive projects: Cash Flow (B) -$28,100 3,850 9,350 14,300 15,900 Year Cash Flow (A) -$28,100 13,500 11,400


Bruin, Inc., has identified the following two mutually exclusive projects: Cash Flow (B) -$28,100 3,850 9,350 14,300 15,900 Year Cash Flow (A) -$28,100 13,500 11,400 8,750 4,650 1 3 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 ls this decision necessarily correct? Yes No O Nm b-1 If the required return is 12 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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