What is the irr for each of these projects

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Reference no: EM131846351

Zayas, LLC, has identified the following two mutually

Year Cash Flow (A) Cash Flow (B)

0 -$78,500 -$78,500

1 43,000 21,000

2 29,000 28,000

3 23,000 34,000

4 21,000 41,000

a. What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? Is this decision necessarily correct?

b. If the required return is 11 percent, what is the NPV for each of these projects? Which project will you choose if you apply the NPV decision rule?

c. Over what range of discount rates would you choose Project A? Project B? At what discount rate would you be indifferent between these two projects? Explain.

Reference no: EM131846351

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