Question: Parkallen Inc. has identified the following two mutually exclusive projects: Year 1 2 3 4 Cash Flow (A) -$36,875 17,315 15,450 12,350 8,250 Cash Flow

Parkallen Inc. has identified the following two mutually exclusive projects: Year 1 2 3 4 Cash Flow (A) -$36,875 17,315 15,450 12,350 8,250 Cash Flow (B) -$36,875 7.300 12,800 18,200 20,400 a-1. What is the IRR for each of these projects? (Do not round intermediate calculations, Round the final answers to 2 decimal places.) TRR Project Project 1 1-2. Using the IRR decision rule, which project should the company accept? Project A Project B a-3. Is this decision necessarily correct? -3. Is this decision necessarily correct? Yes 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.) NP Project a Projects b-2. Which project will the company choose if it applies the NPV decision rulo? 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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