Refer to Gendron Products in E12-46B. Compute the IRR of each project and use this information to

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Refer to Gendron Products in E12-46B. Compute the IRR of each project and use this information to identify the better investment.
Refer to E12-46B
Use the NPV method to determine whether Gendron Products should invest in the following projects:
• Project A costs $285,000 and offers eight annual net cash inflows of $60,000. Gendrons Products requires an annual return of 14% on projects like A.
• Project B costs $385,000 and offers nine annual net cash inflows of $70,000. Gendron Products demands an annual return of 12% on investments of this nature.
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Managerial Accounting

ISBN: 978-0132890540

3rd edition

Authors: Karen W. Braun, Wendy M. Tietz

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