What is the irr for project a

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Reference no: EM131915224

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

Year	Cash Flow (A)	Cash Flow (B)
0	-$36,800	-$36,800
1	19,150	6,670
2	14,650	13,170
3	12,150	19,670
4	9,150	23,670

Required:

(a) What is the IRR for Project A?

21.9%

20.2%

22.32%

20.62%

21.26%

(b) What is the IRR for Project B?

21.44%

20.82%

21.86%

20.2%

19.78%

$3,536.41

$3,605.08

$3,433.41

$3,330.41

$3,261.74

(d) If the required return is 16 percent, what is the NPV for Project B?

$4,632.52

$4,279.56

$4,191.32

$4,411.92

$4,544.28

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

18.71%

19.1%

20.67%

20.28%

19.69%

Reference no: EM131915224

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