Please help this is very important. Please do NOT use excel. Do NOT SHOW in excel. Please show ALL FORMULAS. Please show step by step INCLUDING PART A B AND C. Please show and EXPLAIN WHY you choose a RATE OF RETURN PERCENTAGE. Please INCLUDE the DISCOUNT FORMULA for PART C. PLEASE keep the problem neat and organized. If you show by handwriting PLEASE KEEP IT neat and organized. THANK YOU.

Problem 9-12 NPV versus IRR [LO1, 5]

Garage, Inc., has identified the following two mutually exclusive projects:

Year	Cash Flow (A)				Cash Flow (B)
0	$	28,000			$	28,000
1		13,400				3,800
2		11,300				9,300
3		8,700				14,200
4		4,600				15,800

a-1	What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

	IRR
Project A	%
Project B	%

a-2	Using the IRR decision rule, which project should the company accept?
	Project A Project B

a-3	Is this decision necessarily correct?
	Yes No

b-1	If the required return is 10 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.)

	NPV
Project A	$
Project B	$

b-2	Which project will the company choose if it applies the NPV decision rule?
	Project A Project B

c.	At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Discount rate

%