Bruin, Incorporated, has identified the following two mutually exclusive projects:Year Cash Flow (A)Cash Flow (B)0-$ 36,2006,30012,80019,30023,300-$ 36,20018,70014,20011,7008,700a. What is the IRR for Project A?1234IRRb. What is the IRR for Project B?IRR c. If the required return is 10 percent, what is the NPV for Project A?NPVd. If the required return is 10 percent, what is the NPV for Project B?NPV

>Please refer to the spreadsheet below for calculation and answer. Cell reference is also…

Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 36,200 1 6,300 12,800 -$36,200 18,700 14,200 11,700 8,700 a. What is the IRR for Project A? 2 3 4 IRR 19,300 23,300 b. What is the IRR for Project B? IRR

Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 36,200 1 6,300 12,800 -$36,200 18,700 14,200 11,700 8,700 a. What is the IRR for Project A? 2 3 4 IRR 19,300 23,300 b. What is the IRR for Project B? IRR

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EB: Wallace Company is considering two projects. Their required rate of return is 10%. Which of the two...

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Question

Bruin, Incorporated, has identified the following two mutually exclusive projects:
Year Cash Flow (A)
Cash Flow (B)
0
-$ 36,200
6,300
12,800
19,300
23,300
-$ 36,200
18,700
14,200
11,700
8,700
a. What is the IRR for Project A?
1
2
3
4
IRR
b. What is the IRR for Project B?
IRR

c. If the required return is 10 percent, what is the NPV for Project A?
NPV
d. If the required return is 10 percent, what is the NPV for Project B?
NPV

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