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

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 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)

## This question was asked on Jul 06, 2011.

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