please answer second subpart because an expert already answered the firstBruin, Inc., has identified the following two mutually exclusive projects: YearCash Flow (A) Cash Flow (B)0–$28,700 –$28,700 1 14,100 4,150 2 12,000 9,650 3 9,050 14,900 4 4,950 16,500 a-1What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2Using the IRR decision rule, which project should the company accept? Project AProject B a-3Is this decision necessarily correct? YesNo b-1If the required return is 12 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2Which project will the company choose if it applies the NPV decision rule? Project AProject B c.At what discount rate would the company 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.)

Answered: Bruin, Inc., has identified the…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 2CMA: Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of...

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please answer second subpart because an expert already answered the first

Bruin, Inc., has identified the following two mutually exclusive projects:

Year	Cash Flow (A)		Cash Flow (B)
0	–$	28,700		–$	28,700
1		14,100			4,150
2		12,000			9,650
3		9,050			14,900
4		4,950			16,500

a-1

What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

a-2	Using the IRR decision rule, which project should the company accept?

	Project A Project B

a-3	Is this decision necessarily correct?

	Yes No

b-1

If the required return is 12 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b-2	Which project will the company choose if it applies the NPV decision rule?

	Project A Project B

c.	At what discount rate would the company 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.)

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