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Lasn HOW (A) Lasn How (B) -$ 29,200 0 -$ 29,200 14.600 12.500 3 9.300 5,200 4.400 9.900 15.400 17.000 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.) Project A Project B 19.02 % 17.68 96 a- 2 3. Using the IRR decision rule, which project should the company accept? Project A O Project B Is this decision necessarily correct? Yes No b- If the required return is 10 percent, what is the NPV for each of these projects? (Do 1. not round Intermediate calculations and round your answers to 2 decimal places, e.g., 3216.) Project A Project B b- 2 Which project will the company choose if it applies the NPV decision rule? O Project A O 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.) Discount rate

Lasn HOW (A) Lasn How (B) -$ 29,200 0 -$ 29,200 14.600 12.500 3 9.300 5,200 4.400 9.900 15.400 17.000 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.) Project A Project B 19.02 % 17.68 96 a- 2 3. Using the IRR decision rule, which project should the company accept? Project A O Project B Is this decision necessarily correct? Yes No b- If the required return is 10 percent, what is the NPV for each of these projects? (Do 1. not round Intermediate calculations and round your answers to 2 decimal places, e.g., 3216.) Project A Project B b- 2 Which project will the company choose if it applies the NPV decision rule? O Project A O 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.) Discount rate

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lasn HOW (A) Lasn How (B) -$ 29,200 0 -$ 29,200 14.600 12.500 3 9.300 5,200 4.400 9.900 15.400 17.000 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.) Project A Project B 19.02 % 17.68 96 a- 2 3. Using the IRR decision rule, which project should the company accept? Project A O Project B Is this decision necessarily correct? Yes No b- If the required return is 10 percent, what is the NPV for each of these projects? (Do 1. not round Intermediate calculations and round your answers to 2 decimal places, e.g., 3216.) Project A Project B b- 2 Which project will the company choose if it applies the NPV decision rule? O Project A O 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.) Discount rate
Transcribed Image Text:Lasn HOW (A) Lasn How (B) -$ 29,200 0 -$ 29,200 14.600 12.500 3 9.300 5,200 4.400 9.900 15.400 17.000 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.) Project A Project B 19.02 % 17.68 96 a- 2 3. Using the IRR decision rule, which project should the company accept? Project A O Project B Is this decision necessarily correct? Yes No b- If the required return is 10 percent, what is the NPV for each of these projects? (Do 1. not round Intermediate calculations and round your answers to 2 decimal places, e.g., 3216.) Project A Project B b- 2 Which project will the company choose if it applies the NPV decision rule? O Project A O 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.) Discount rate
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