Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) -$ 29,200 Cash Flow (B) -$ 29,200 01234 14.600 12,500 9,300 4,400 9,900 15,400 5,200 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 % % 8- 2. Using the IRR decision rule, which project should the company accept? Project A O Project B

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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Bruin, Incorporated, has identified the following two mutually exclusive projects:
Year
Cash Flow (A)
-$ 29,200
Cash Flow (B)
-$ 29,200
01234
14.600
12,500
9,300
4,400
9,900
15,400
5,200
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
%
%
8-
2.
Using the IRR decision rule, which project should the company accept?
Project A
O Project B
Transcribed Image Text:Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) -$ 29,200 Cash Flow (B) -$ 29,200 01234 14.600 12,500 9,300 4,400 9,900 15,400 5,200 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 % % 8- 2. Using the IRR decision rule, which project should the company accept? Project A O Project B
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