Mahjong, inc., has identified the following two mutually exclusive projects:

year cash flow (a) cash flow (b)
0 –$36,000 –$36,000
1 18,900 6,100
2 14,400 12,600
3 11,900 19,100
4 8,900 23,100

required:

(a) what is the irr for project a?

(b) what is the irr for project b?

(c) if the required return is 8 percent, what is the npv for project a?

(d) if the required return is 8 percent, what is the npv for project b?

(e) at what discount rate would the company be indifferent between these two projects?

At december 31, 2016, pina corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 107,810 shares $10,781,000 common stock, $5 par, 4,026,000 shares 20,130,000 during 2017, pina did not issue any additional common stock. the following also occurred during 2017. income from continuing operations before taxes $21,950,000 discontinued operations (loss before taxes) $3,505,000 preferred dividends declared $1,078,100 common dividends declared $2,300,000 effective tax rate 35 % compute earnings per share data as it should appear in the 2017 income statement of pina corporation