Question

Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 37,500 –$ 37,500 1 17,300 5,700 2 16,200 12,900 3 13,800 16,300 4 7,600 27,500 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.)

Answer 1

Answer:

Project  Ahas IRR of 19.71%

Project B has IRR  of 18.76%

Explanation:

The IRRs were computed using  the IRR formula in excel given as irr(values)

It is important to note that initial investments were negative amounts as that represented the initial cash parted with, so as to have cash inflows subsequently.

Find attached for detailed calculations.