Projects A and B have the following cash flows: a. If the cash flows from the projects

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Projects A and B have the following cash flows:

a. If the cash flows from the projects are identical, which of the two projects would have a higher IRR? Why?

b. If C1B = 2C1A, C2B = 2C2A, and C3B = 2C3A, then is IRRA = IRRB ?

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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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Question Posted: Oct 01, 2015 07:03 AM

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Projects A and B have the following cash flows: a. If the cash flows from the projects

Question:

YEAR | PROJECTA | PROJECT B -$1,000 C1A C2A C3A $2,000 C1B C2B C3B

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a Project A would have a higher IRR since initial in...View the full answer

Corporate Finance Core Principles and Applications

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