Identified the two mutually exclusive projects

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

Year Cash Flow (A) Cash Flow (B)

0 –$ 29,300 –$ 29,300

1 14,700 4,450

2 12,600 9,950

3 9,350 15,500

4 5,250 17,100

What is the IRR for each of these projects?

If the required return is 11 percent, what is the NPV for each of these projects?

At what discount rate would the company be indifferent between these two projects?

Reference no: EM13913179

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