Mahjong, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$36,300 –$36,300 1 18,600...

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Finance

Mahjong, Inc., has identified the following two mutuallyexclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 –$36,300        –$36,300
1 18,600        6,400
2 14,100        12,900
3 11,600        19,400
4 8,600        23,400

Required:
(a) What is the IRR for Project A?
(Click toselect)  18.76%  19.16%  19.75%  20.34%  20.74%

(b) What is the IRR for Project B?
(Click toselect)  21.63%  19.98%  20.6%  21.22%  19.57%

(c) If the required return is 11 percent, what is the NPV forProject A?
(Click toselect)  $6,228.97  $6,349.92  $5,866.11  $5,745.16  $6,047.54

(d) If the required return is 11 percent, what is the NPV forProject B?
(Click toselect)  $10,011.87  $9,058.35  $9,535.11  $9,821.16  $9,249.06

(e) At what discount rate would the company be indifferent betweenthese two projects?
(Click toselect)  21.61%  22.07%  22.75%  23.89%  23.43%

rev: 09_18_2012

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Mahjong, Inc., has identified the following two mutuallyexclusive projects: YearCash Flow (A)Cash Flow (B)0–$36,300 –$36,300 118,600 6,400 214,100 12,900 311,600 19,400 48,600 23,400 Required:(a)What is the IRR for Project A?(Click toselect) 18.76% 19.16% 19.75% 20.34% 20.74% (b)What is the IRR for Project B?(Click toselect) 21.63% 19.98% 20.6% 21.22% 19.57% (c)If the required return is 11 percent, what is the NPV forProject A?(Click toselect) $6,228.97 $6,349.92 $5,866.11 $5,745.16 $6,047.54 (d)If the required return is 11 percent, what is the NPV forProject B?(Click toselect) $10,011.87 $9,058.35 $9,535.11 $9,821.16 $9,249.06 (e)At what discount rate would the company be indifferent betweenthese two projects?(Click toselect) 21.61% 22.07% 22.75% 23.89% 23.43%rev: 09_18_2012

Year	Cash Flow (A)	Cash Flow (B)
0	–$36,300	–$36,300
1	18,600	6,400
2	14,100	12,900
3	11,600	19,400
4	8,600	23,400

(a)	What is the IRR for Project A?

	(Click toselect) 18.76% 19.16% 19.75% 20.34% 20.74%

(b)	What is the IRR for Project B?

	(Click toselect) 21.63% 19.98% 20.6% 21.22% 19.57%

(c)	If the required return is 11 percent, what is the NPV forProject A?

	(Click toselect) $6,228.97 $6,349.92 $5,866.11 $5,745.16 $6,047.54

(d)	If the required return is 11 percent, what is the NPV forProject B?

	(Click toselect) $10,011.87 $9,058.35 $9,535.11 $9,821.16 $9,249.06

(e)	At what discount rate would the company be indifferent betweenthese two projects?

	(Click toselect) 21.61% 22.07% 22.75% 23.89% 23.43%