I Garage Inc. has identified the following two mutually exclusive projects:

I

Garage Inc. has identified the following two mutually exclusive projects:

a1. What is the IRR for each of these projects? A & B.b1. If the required return is 12
percent what is the NPV for each of these projects? A & B
c. At what discount rate would the company be indifferent between these two projects?

II

An investment has an installed cost of $533800. The cash flows over the four-year life of the investment are projected to be $215850
$232450 $199110 and $147820.

1.If the discount rate is infinite what is the NPV?

2.At what discount rate is the NPV just equal to zero?