Using the following data for project A and B: ^ Calculate the net present value for each

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Using the following data for project A and B:

^ Calculate the net present value for each project, assuming a cost of capital of 15%.

^ Calculate the internal rate of return for each project.

^ Which project should the ¢rm choose based on using net present value and the internal rate of return?

^ If the cost of capital were to increase to 20%, would project A or B be preferred?image text in transcribed

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