What is the irr for project b

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Reference no: EM131975987

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

Year Cash Flow (A) Cash Flow (B)
0 -$37,000        -$37,000       
1 19,370        6,850       
2 14,870        13,350       
3 12,370        19,850       
4 9,370        23,850      

Required:

(a) What is the IRR for Project A?

22.94%

22.51%

21.85%

21.19%

20.76%

(b) What is the IRR for Project B?

21.13%

20.5%

20.07%

22.19%

21.76%

(c) If the required return is 14 percent, what is the NPV for Project A?

$5,330.4

$5,490.31

$5,063.88

$5,170.49

$5,596.92

(d) If the required return is 14 percent, what is the NPV for Project B?

$6,596.45

$6,800.46

$7,004.47

$6,460.44

$7,140.48

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

19.26%

20.22%

18.3%

18.68%

19.84%

Reference no: EM131975987

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