Question: Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 77,500 -$ 77,500 43,000 21,500 29.000
Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 77,500 -$ 77,500 43,000 21,500 29.000 28,000 23.000 34,000 4 21.000 41,000 WN- 2-1. 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.) 2-2. If you apply the IRR decision rule, which project should the corhpany accept? b-1. Assume the required return is 11 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 if you apply the NPV decision rule? RR a-1. Project A Project B a-2. Project acceptance b-1. Project A Project b-2. Project acceptance
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