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Bruin, Incorporated, has identified the following two mutually exclusive projects: Note: Do not...

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Accounting

Bruin, Incorporated, has identified the following two mutually exclusive projects:
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.
Year Cash Flow (A) Cash Flow (B)
0$ 61,000$ 61,000
137,00023,900
231,00027,900
321,50033,000
414,20024,900
a-1. What is the IRR for each of these projects?
a-2. If you apply the IRR decision rule, which project should the company accept?
b-1. Assume the required return is 12 percent. What is the NPV for each of these projects?
b-2. Which project will you choose of you apply the NPV decision rule?
c-1. Over what range of discount rates would you choose Project A?
c-2. Over what range of discount rates would you choose Project B?
d. At what discount rate would you be indifferent between these two projects?

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