Question: Garage, Inc., has identified the following two mutually exclusive projects: Yew a + 2 3 Cash Flow Ay Cash Flow (B) -5 29 800 -5
Garage, Inc., has identified the following two mutually exclusive projects: Yew a + 2 3 Cash Flow Ay Cash Flow (B) -5 29 800 -5 29.500 15.200 4.700 13.100 10 200 9.800 16.000 5.500 17.800 - What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Project Project -2 Using the IRR decision rule, which project should the company accept? Project A Projecte ** Is this decision necessarily correct? -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.) NPV Project Project B 2 Which project will the company choose if it applies the NPV decision rule? Project Project B At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32. 16.) Discount
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