Garage, Inc., has identified the following two mutually exclusive projects:
| Year |
Cash Flow A |
Cash Flow B |
| 0 |
-$28,700 |
-$28,700 |
| 1 |
$14,100 |
$4,150 |
| 2 |
$12,000 |
$9,650 |
| 3 |
$9,050 |
$14,900 |
| 4 |
$4,950 |
$16,500 |
What is the IRR for each of these projects?
Project A: 17.84%
Project B: 17%
If the required return is 12 percent, what is the NPV for each of these projects?
NPV Project A: $3,042.70
NPV Project B: $3,789.83
At what discount rate would the company be indifferent between these two projects?