The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
University
| Teaching Since: | Apr 2017 |
| Last Sign in: | 439 Weeks Ago |
| Questions Answered: | 9562 |
| Tutorials Posted: | 9559 |
bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
|
Garage, Inc., has identified the following two mutually exclusive projects: |
|
Year |
Cash Flow (A) |
 |
Cash Flow (B) |
||||
|
0 |
Ac€?o$ |
28,700 |
 |  |
Ac€?o$ |
28,700 |
 |
|
1 |
 |
14,100 |
 |  |  |
4,150 |
 |
|
2 |
 |
12,000 |
 |  |  |
9,650 |
 |
|
3 |
 |
9,050 |
 |  |  |
14,900 |
 |
|
4 |
 |
4,950 |
 |  |  |
16,500 |
 |
IRR
Project A= 17.85
Project B= 17.01
Required return is 12 percent, NPV is
Project A= 3043.04
Project B=3789.85
At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and round your final answer to 2 decimal places.
Sol-----------uti-----------on -----------att-----------ach-----------ed -----------in -----------exc-----------el -----------fil-----------e. -----------Als-----------o c-----------opi-----------ed -----------bel-----------ow:----------- Ye-----------ar -----------Cas-----------h F-----------low-----------s (-----------A) -----------Cas-----------h F-----------low-----------s (-----------B) -----------Dif-----------fer-----------ent-----------ial----------- Ca-----------sh -----------Flo-----------ws -----------0 ------------287-----------00 ------------28-----------700----------- 0 -----------1 1-----------410-----------0 4-----------150----------- 99-----------50 -----------2 1-----------200-----------0