Question: Garage, Inc., has identified the following two mutually exclusive projects YearCash Flow (A) Cash Flow (B) -$ 29,800 $ 29,800 4,700 10,200 16,000 17,600 15,200

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

Garage, Inc., has identified the following two mutually exclusive projects YearCash Flow (A) Cash Flow (B) -$ 29,800 $ 29,800 4,700 10,200 16,000 17,600 15,200 13,100 9,600 5,500 2 4 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? Project A Project B a-3 Is this decision necessarily correct? O Yes 0 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 anwers 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? O 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

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