Question: Parkallen Inc. has identified the following two mutually exclusive projects: Year 0 1 2. 3 4 Cash Flow (A) -$36,875 17.315 15,450 12,350 8.250 Cash

Parkallen Inc. has identified the following two mutually exclusive projects: Year 0 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 a-2. Using the IRR decision rule, which project should the company accept? Project A Project B a-3. Is this decision necessarily correct? a-3. Is this decision necessarily correct? Yes b-1. W 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 S sign in your response.) NOW Project Project b-2. Which project will the company choose if it applies the NPV decision rute? Project A Project c. At what discount rate would the company be indifferent between these two projects? (Do not found intermediate calculations. Round the final answer to 2 decimal places.) Discount rate
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