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Homework answers / question archive / Vals Corporation has identified the following two mutually exlusive projects Year Cash Flow A Cash Flow B 0 -$35,000 -$35,000 1 $16,500 $18,000 2 $25,000 $23,200 3 $22,300 $25,000 4 $19,500 $19,200 a
Vals Corporation has identified the following two mutually exlusive projects
| Year | Cash Flow A | Cash Flow B |
| 0 | -$35,000 | -$35,000 |
| 1 | $16,500 | $18,000 |
| 2 | $25,000 | $23,200 |
| 3 | $22,300 | $25,000 |
| 4 | $19,500 | $19,200 |
a. What is the IRR? Which project should be accept?
b. If the required return is 17%, what is the NPV of each project? Which project will the company choose is it applies the NPV decision rule?
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