Parkallen Inc. has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) -$32, 150 15,560 13,560 10, 460 6,360 Project A Project B Cash Flow (B) -$32,150 a-1. What is the IRR for each of these projects? (Do not round intermediate calculations. Round the final answers to decimal places.) 5,500 11,000 16,400 18,240 Project A Project B IRR % a-2. Using the IRR decision rule, which project should the company accept?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 9-12 NPV versus IRR (LO1, 5)
Parkallen Inc. has identified the following two mutually exclusive projects:
Year
0
1
2
4
Cash Flow
(A)
-$32, 150
15,560
13,560
10, 460
6,360
Project A
Project B
Cash Flow
(B)
-$32,150
a-1. What is the IRR for each of these projects? (Do not round intermediate calculations. Round the final answers to 2
decimal places.)
5,500
11,000
16,400
18,240
Project A
O Project B
IRR
a-2. Using the IRR decision rule, which project should the company accept?
Transcribed Image Text:Problem 9-12 NPV versus IRR (LO1, 5) Parkallen Inc. has identified the following two mutually exclusive projects: Year 0 1 2 4 Cash Flow (A) -$32, 150 15,560 13,560 10, 460 6,360 Project A Project B Cash Flow (B) -$32,150 a-1. What is the IRR for each of these projects? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) 5,500 11,000 16,400 18,240 Project A O Project B IRR a-2. Using the IRR decision rule, which project should the company accept?
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