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(Solved): Flamingo, Incorporated, has identified the following two mutually exclusive projects: YearCash Flow ...



Flamingo, Incorporated, has identified the following two mutually exclusive projects: YearCash Flow (A)Cash Flow (B)0−$ 28,300−$ 28,300113,7003,950211,6009,45038,85014,50044,75016,100 a-1. What is the IRR for each of these projects? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16 a-2. Using the IRR decision rule, which project should the company accept? multiple choice 1 Project A Correct Project B a-3. Is this decision necessarily correct? multiple choice 2 Yes No Correct b-1. If the required return is 10 percent, what is the NPV for each of these projects? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b-2. Which project will the company choose if it applies the NPV decision rule? multiple choice 3 Project A Project B c. At what discount rate would the company be indifferent between these two projects? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.



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