10B b-1lf the required return is 12 percent, what is the NPV for each of theseprojects? (Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)Project AProject Bb-Which project will the company choose if it applies the NPV decision rule?O Project AO Project B Bruin, Inc., has identified the following two mutually exclusive projects:Cash FlowCash FlowYear(A)-$28,10013,50011,4008,7504,650(B)-$28,1003,8509,35014,30015,900-23 4

Cash flows: The discount rate is 12%.

Answered: Bruin, Ic., has identified the…

Bruin, Ic., has identified the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) -$28,100 13,500 11,400 8,750 4,650 (B) -$28,100 3,850 9,350 14,300 15,900 4 o-23

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

100%

10B

b-1lf 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.)
Project A
Project B
b-
Which project will the company choose if it applies the NPV decision rule?
O Project A
O Project B

Bruin, Inc., has identified the following two mutually exclusive projects:
Cash Flow
Cash Flow
Year
(A)
-$28,100
13,500
11,400
8,750
4,650
(B)
-$28,100
3,850
9,350
14,300
15,900
-23 4

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