Bruin, Incorporated, has identified the following two mutually exclusive projects: Year

Cash Flow (A) Cash Flow (B)

0 $ 29,200 $ 29,200

1 14,600 4,400

2 12,500 9,900

3 9,300 15,400

4 5,200 17,000

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?

multiple choice

Project A

Project B

a-3. Is this decision necessarily correct?

multiple choice

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?

multiple choice

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.)