Question: Parkallen Inc. has identified the following two mutually exclusive projects: Cash Flow (B) - $38, 450 Year 0 1 2 3 4 Cash Flow (A)

Parkallen Inc. has identified the following two mutually exclusive projects: Cash Flow (B) - $38, 450 Year 0 1 2 3 4 Cash Flow (A) - $38, 450 17,900 16,080 12, 980 8, 880 7,900 13, 400 18, 800 21, 120 8-1. What is the IRR for each of these projects? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) IRR Project Project B a-2. Using the IRR decision rule, which project should the company accept? Project A O Project B 2-3. Is this decision necessarily correct? O Yes O No b-1. If the required return is 11%, what is the NPV for each of these projects? (Do not round Intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign In your response.) NPV 9 Project A Project B b-2. Which project will the company choose if It applies the NPV decision rule? Project A Project B c. At what discount rate would the company be Indifferent between these two projects? (Do not round Intermediate calculations. Round the final answer to 2 decimal places.) Discount rate
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