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

Year Cash Flow (A) Cash Flow (B)

0 –$43,000 –$43,000

1 23,000 7,000

2 17,900 13,800

3 12,400 24,000

4 9,400 26,000

Required:

(a)

The IRR for Projects A and B is _____percent and ____percent respectively. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))

(b)

If the required return is 11 percent, the NPV for Projects A and B is $ ____and $_____, respectively. You will choose Project B if you apply the NPV decision rule. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16))

(c)

At a discount rate of _____percent, you would be indifferent between these two projects. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g. 32.16)

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