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37. Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A)...

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Finance

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

Year Cash Flow (A) Cash Flow (B)

0 $37,300 $37,300

1 19,660 7,180

2 15,170 13,680

3 12,660 20,160

4 9,660 24,160

a. What is the IRR for Project A?

b. What is the IRR for Project B?

c. If the required return is 11 percent, what is the NPV for Project A?

d. If the required return is 11 percent, what is the NPV for Project B?

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

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