Garage, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 28,900 $ 28,900 1 14,300 4,250 2 12,200 9,750 3 9,150 15,100 4 5,050 16,700 a-1 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 A % Project B % a-2 Using the IRR decision rule, which project should the company accept? multiple choice 1 Project A Project B a-3 Is this decision necessarily correct? multiple choice 2 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.) NPV Project A $ Project B $ b-2 Which project will the company choose if it applies the NPV decision rule? multiple choice 3 Project A Project B c. 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 rate %

Garage. Inc., has identified the following two mutually exclusive projects: Cash Flow Year Cash Flow (B) $28,900 4.250 9,750 15,100 16,700 $28.900 14.300 12,200 9,150 5,050 1 2 3 4 4-1 What is the IRR for each of these projects? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 declmal places, e.g., 32.18.) IRR % Project A Project B 96 2-2 Using the IRR decision rule, which project should the company accept? Project A O Project B 2-3 Is this decision necessarily correct? Yes O 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., 32.18.) NPV $ Project A Project B A 2 b-2Which project will the company choose if it applies the NPV decision rule? O Project A O Project B c. 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 rate 96