Question: Piercy, LLC, has identified the following two mutually exclusive projects: Year AWN-O Cash Flow (A) Cash Flow (B) -$54,000 -$54,000 30,000 17,600 24,000 21,600 18,000

 Piercy, LLC, has identified the following two mutually exclusive projects: YearAWN-O Cash Flow (A) Cash Flow (B) -$54,000 -$54,000 30,000 17,600 24,000

Piercy, LLC, has identified the following two mutually exclusive projects: Year AWN-O Cash Flow (A) Cash Flow (B) -$54,000 -$54,000 30,000 17,600 24,000 21,600 18,000 26,000 12,800 25,600 2 3 4 a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 14 percent. What is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. Which project will you choose of you apply the NPV decision rule? C-1. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. Over what range of discount rates would you choose Project B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d. At what discount rate would you be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-1. Project A % Project B % a-2. b-1. Project A Project B b-2. C-1. % C-2. % d . Discount rate %

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