Zayas, LLC, has identified the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B) 0 -$ 63,000 -$ 63,000 1 39,000 25,700 2 33,000 29,700 3 22,500 35,000 4 14,600 24,700 a. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Internal rate of return Project A %

Project B %

If you apply the IRR decision rule, which project should the company accept?

b. Assume the required return is 14 percent. What is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Net present value Project A $ Project B $ Which project will you choose if you apply the NPV decision rule?

c. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Project A %

Over what range of discount rates would you choose Project B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Project B %

At what discount rate would you be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Discount rate