Question: Garage. Inc., has identified the following two mutually exclusive projects: a-1 What is the IRR for each of these projects? a-2 Using the IRR decision

 Garage. Inc., has identified the following two mutually exclusive projects: a-1

Garage. Inc., has identified the following two mutually exclusive projects: a-1 What is the IRR for each of these projects? a-2 Using the IRR decision rule, Which project should the company accept? Project A Project B a-3 Is this decisbn necessarily correct? Yes No b-1 If the required return is 12 percent, what is the NPV for each of these projects? 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

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