IF ANYONE COULD SHOW ME HOW TO DO THIS PROBLEM STEP-BY-STEP AND BY HAND (NO EXCEL!) THAT WOULD BE ABSOLUTELY GREAT!
Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B)
0 -$68.000 -$68.000 1 44.000 30.200
2 38.000 34.200
3 25.000 40.000
4 15.600 24.200
a-1. 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.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. 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.) b-2. Which project will you choose of you apply the NPV decision rule? c-1. 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.) c-2. 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.) d. 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.) \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{} & & % \\ \hline a-1. Project A & & % \\ \hline & '
Project B & & \\ \hline a-2. b-1. Project A Project B b-2.
c-1.
c-2. d. Discount rate