Question: Zayas, LLC, has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) Year 62,000 $62,000 38.000 24,800 32,000 28,800 34,000 22,000

 Zayas, LLC, has identified the following two mutually exclusive projects: CashFlow (A) Cash Flow (B) Year 62,000 $62,000 38.000 24,800 32,000 28,800

Zayas, LLC, has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) Year 62,000 $62,000 38.000 24,800 32,000 28,800 34,000 22,000 14.400 24,800 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 retum Project A Project B If you apply the IRR decision rule, which project should the company accept? Project A b. Assume the required return is 13 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 B

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