What is the IRR for Project A

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Reference no: EM132744026

Problem - Bruin, 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?

b. What is the IRR for Project B?

c. If the required return is 16 percent, what is the NPV for Project A?

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

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

Reference no: EM132744026

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