Question: McIntyre, LLC, has identified the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (B) -$65,000 34,000 27,000 21,000 17,000 -$65,000 19,000 25,000
McIntyre, LLC, has identified the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (B) -$65,000 34,000 27,000 21,000 17,000 -$65,000 19,000 25,000 29,000 34,000 (a) What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 docimal placos (o.g, 32.16)) Internal rate of return Project A Project B (b)If you apply the IRR decision rule, which project should the company accept? (Click to select) Requirement 2: (a) Assume the required return is 11 percent What is the NPV for each of these projects? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g, 32.16)) Net present value Project A Project B (b) Which project will you choose if you apply the NPV decision rule? (Click to select) Requirement 3: (a) Over what range of discount rates would you choose Project A? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g, 32.16)) Project A (Click to select) (b)Over what range of discount rates would you choose Project B (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g.,32.16).) Project B (Click to select) (c) At what discount rate would you be indiferent between these two projects? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g, 32.16).) Discount rate
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