Bruin, Inc., has identified the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 –$28,900 –$28,900
1 14,300 4,250
2 12,200 9,750
3 9,150 15,100
4 5,050 16,700

a. What is the IRR for each of these projects?
b. Using the IRR decision rule, which project should the company accept?
i. Project A
ii. Project B

c. Is this decision necessarily correct?
d. If the required return is 10 percent, what is the NPV for each of these projects?
e. Which project will the company choose if it applies the NPV decision rule?
i. Project A
ii. Project B
f. At what discount rate would the company be indifferent between these two projects?

Yang corporation starts a foreign subsidiary on january 1 by investing 20,000 rand. yang owns all of the shares of the subsidiary’s common stock. the foreign subsidiary generates 40,000 rand of net income throughout the year and pays no dividends. the rand is the foreign subsidiary’s functional currency. currency exchange rates for 1 rand are as follows: lo 10-3 january $0.25 = 1 rand average for the 0.28 = 1 december 0.31 = 1 in preparing consolidated financial statements, what translation adjustment will yang report at the end of the current year? a. $400 positive (credit). b. $1,000 positive (credit). c. $1,400 positive (credit). d. $2,400 positive (credit). hoyle, joe ben; hoyle, joe ben. advanced accounting (page 513). mcgraw-hill higher education. kindle edition.