What is the IRR for each of these projects? (Do not include the percent signs (%
ID: 2694621 • Letter: W
Question
What is the IRR for each of these projects?(Do not include the percent signs (%).Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations.Round your answers to 2 decimal places (e.g., 32.16).)
Assume the required return is 14 percent. What is the NPV for each of these projects?(Do not include the dollar signs ($).Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations.Round your answers to 2 decimal places (e.g., 32.16).)
Over what range of discount rates would you choose Project A?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)
Over what range of discount rates would you choose Project B?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)
At what discount rate would you be indifferent between these two projects?(Do not include the percent sign (%).Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)
Framing Hanley, LLC, has identified the following two mutually exclusive projects:Explanation / Answer
Hi, Please find the answers as follows: Requirement 1: Project A IRR = 35.33% Project B IRR = 31.88% Project A should be accepted. Requirement 2: NPV Project A = -68000 + 44000/(1+.14)^1 + 38000/(1+.14)^2 + 25000/(1+.14)^3 +15600/(1+.14)^4= 25946.99 NPV Project B = -68000 + 30200/(1+.14)^1 + 34200/(1+.14)^2 + 40000/(1+.14)^3 + 24200/(1+.14)^4= 26134.22 Project B should be accepted. Requirement 3: Part A: Above 14.66% Part B: Below 14.66% Part C: At 14.66%, we would be indifferent. Thanks.
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