Question: Garage, Inc., has identified the following two mutually exclusive projects: ear Cash Flow (A) Cash Flow (B) S 28,000 28,000 13,400 11,300 8,700 4,600 3,800
Garage, Inc., has identified the following two mutually exclusive projects: ear Cash Flow (A) Cash Flow (B) S 28,000 28,000 13,400 11,300 8,700 4,600 3,800 9,300 14,200 15,800 a-1 What is the IRR for each of these projects? (Do not round intermediate calculations. En answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B 16.13 % 16.02 % 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 re intermediate calculations and round your answers to 2 decimal places, e.g.. 32.16.) Project A Project B O Type here to search 4) F2
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