If the required return is 11 percent what is the npv for

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Mahjong, Inc., has identified the following two mutually exclusive projects

Year Cash Flow (A) Cash Flow (B)
0 '$37,300 '$37,300
1 19,660 7,180
2 15,170 13,680
3 12,660 20,160
4 9,660 24,160

Required:

(a) What is the IRR for Project A?

(b) What is the IRR for Project B?

(c) If the required return is 11 percent, what is the NPV for Project A?

(d) If the required return is 11 percent, what is the NPV for Project B?

(e) At what discount rate would the company be indifferent between these two projects?

Reference no: EM13575971

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