Zayas, LLC, has identified the following two mutually exclusive projects:

Year	Cash Flow (A)				Cash Flow (B)
0		$	52,000			$	52,000
1			28,000				15,800
2			22,000				19,800
3			17,000				24,000
4			12,400				25,800

a. 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.)

	Internal rate of return
Project A	%
Project B	%

If you apply the IRR decision rule, which project should the company accept? Project A or B?

b. 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.)

	Net present value
Project A	$
Project B	$

Which project will you choose if you apply the NPV decision rule? Project A or B?

c. 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.) Project A (Click to select) Above or Below??? 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.) Project B (Click to select) Above or Below???

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.) Discount rate %