Parkallen Inc. has identified the following two mutually exclusive projects:

Year        Cash Flow (A)        Cash Flow (B)

0               –$ 29,000                  –$ 29,000

1                   14,400                      4,300

2                    12,300                     9,800

3                      9,200                  15,200

4                       5,100                   16,800 

What is the IRR for each of these projects? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

 Using the IRR decision rule, which project should the company accept?

Is this decision necessarily correct?

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.)

Which project will the company choose if it applies the NPV decision rule?

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.)