Question: Zayas, LLC, has identified the following two mutually exclusive projects Year 0 1 2 3 4 Cash Flow (A) -S 68,000 44,000 38,000 25,000 15,600

Zayas, LLC, has identified the following two mutually exclusive projects Year 0 1 2 3 4 Cash Flow (A) -S 68,000 44,000 38,000 25,000 15,600 Cash Flow (B) $68,000 30,200 34,200 40,000 24,200 a. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a perce Project A Project B Internal rate of return % % If you apply the IRR decision rule, which project should the company accept? (Click to select) b. Assume the required return is 14 percent. What is the NPV for each of these projects? (Do not round intermediate calcula Net present value Project A Project B Which project will you choose if you apply the NPV decision rule? Click to select) c. Over What range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your Project A Click to select) V 9 (Click to select) b. Assume the required return is 14 percent. What is the NPV for each of these projects? (Do not round intermediate calc Project A Project B Net present value $ $ Which project will you choose if you apply the NPV decision rule? (Click to select) % c. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter Project A (Click to select) Over what range of discount rates would you choose Project B? (Do not round intermediate calculations and enter yo Project B (Click to select) At what discount rate would you be indifferent between these two projects? (Do not round intermediate calculations an % 32.16.) Discount rate References eBook & Resources Worksheet One 13 The last Rate Explain OC Difficulty: 1 Basic
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
