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 O1234

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
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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
a-
Using the IRR decision rule, which project should the company accept?
2
O Project A
Project B
a-
Is this decision necessarily correct?
3.
O Yes
O No
Transcribed Image Text: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 a- Using the IRR decision rule, which project should the company accept? 2 O Project A Project B a- Is this decision necessarily correct? 3. O Yes O No
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
Transcribed Image Text: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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