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

Year Cash Flow $($A$)$ Cash Flow $($B$)$

$0$$ $29,100$$ $29,100$

$114,5004,350$

$212,4009,850$

$39,25015,300$

$45,15016,900$

a$-1$

What is the IRR for each of these projects? $($Do not round intermediate calculations and round your final answers to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16))$

IRR

Project A

$19\mathrm{.}00$

$\%$

Project B

$18\mathrm{.}00$

$\%$

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 $12$ percent, what is the NPV for each of these projects? $($Do not round intermediate calculations and round your final answers to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16))$

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 and round your final answer to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16))$

Discount rate

$15$

$\%$