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Bruin, Inc., hasidentified the following two mutually exclusive projects: YearCash Flow (A)Cash Flow (B)0–$28,000–$28,000113,4003,800211,3009,30038,70014,20044,60015,800A) What is the IRR for each of these projects?B) Using the IRR decision rule, which project should the companyaccept?C) Is this decision necessarily correct?D) If the required return is 10 percent, what is the NPV foreach of these projects?E) Which project will the company choose if it applies the NPVdecision rule?F) At what discount rate would the company be indifferentbetween these two projects?
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