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

YearCash Flow (A)Cash Flow (B)0$29,700$29,700115,1004,650213,00010,15039,55015,90045,45017,500

a-1What 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.)

IRRProject A %Project B %

a-2Using the IRR decision rule, which project should the company accept?

Project AProject B

a-3Is this decision necessarily correct?YesNo

b-1If the required return is 12 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.)

NPVProject A$ Project B$

b-2Which project will the company choose if it applies the NPV decision rule?Project AProject 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 %