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  3. mahjong, inc., has identified the following two mu

Mahjong, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$37,400        –$37,400        1 19,750        7,300        2 15,270        13,800        3 12,750        20,270        4 9,750        24,270       Required: (a) What is the IRR for...

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Mechanical Engineering

Mahjong, Inc., has identified the following two mutuallyexclusive projects:

YearCash Flow(A)Cash Flow(B)
0–$37,400      –$37,400      
119,750      7,300      
215,270      13,800      
312,750      20,270      
49,750      24,270     
Required:
(a)What is the IRR for ProjectA?

(Click to select)23.45%22.77%23.91%22.09%21.63%

  
(b)What is the IRR for ProjectB?

(Click to select)21.31%21.97%23.07%22.63%20.87%

  
(c)If the required return is 10percent, what is the NPV for Project A?
(Click toselect)$8,942.38$9,695.42$9,130.64$9,883.68$9,413.03
  
(d)If the required return is 10percent, what is the NPV for Project B?
(Click toselect)$13,069.57$11,824.85$12,820.63$12,447.21$12,073.79
  
(e)At what discount rate would thecompany be indifferent between these two projects?
(Click toselect)20.42%19.24%18.84%19.83%20.82%

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