Part D please Piercy, LLC, has identified the following two mutually exclusive projects:Year Cash Flow (A) Cash Flow (B)-$61,00037,00031,00021,50014,200-$ 61,00023,90027,90033,00024,900134a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enteryour answers as a percent rounded to 2 decimal places, e.g., 32.16.)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? (Do notround intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)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? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)c-2. Over what range of discount rates would you choose Project B? (Do not round intermediatecalculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)d.At what discount rate would you be indifferent between these two projects? (Do not roundintermediate calculations and enter your answer as a percent rounded to 2 decimal places,e.g., 32.16.) 30.64 %a-1. Project AProject Ba-2.27.73 %Project Ab-1. Project A$21,076.36Project B$21,894.14b-2.Project Bс-1. Above14.79 %c-2. Below14.79 %d.Discount rate%%24

Since, specifically Part D is asked, so the following solution also relates to Part D only. Solution…

Answered: d. At what discount rate would you be…

d. 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.)

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 18PC

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