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

Question

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

The IRR for Projects A and B is  percent and  percent respectively. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))

If the required return is 11 percent, the NPV for Projects A and B is $ and $, respectively. You will choose Project (Click to select)AB if you apply the NPV decision rule. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16))

At a discount rate of  percent, you would be indifferent between these two projects. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g. 32.16)

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

Explanation / Answer

Required Return 11% CF A CF B PVF PVCFB PVCFA Year 0 (43,000.00)            (43,000.00)                      1.00 (43,000.00) (43,000.00) 1     23,000.00                 7,000.00                      0.90        6,306.31     20,720.72 2     17,900.00              13,800.00                      0.81     11,200.39     14,528.04 3     12,400.00              24,000.00                      0.73     17,548.59        9,066.77 4        9,400.00              26,000.00                      0.66     17,127.01        6,192.07 A B a) IRR 20% 19% b) NPV A 7507.60656 NPV B 9182.29436 Project B C) 15.27%

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