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In: Mechanical Engineering

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

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 Project A?

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

  
(b) What is the IRR for Project B?

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

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

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