Calculate the NPV and the IRR in the two projects as shown in the following table. The
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Calculate the NPV and the IRR in the two projects as shown in the following table. The company’s COC is 10 per cent. Which of the two projects will you opt for if they are mutually exclusive? Why? Also, why do the two projects give different outcomes?
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Year 0 A -5,000 B -5,000 Year 1 1,500 Year 2 2,000 Year 3 1,000 (in 2) Year 4 1,965 7,500
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Related Book For
Corporate Finance Theory And Practice In Emerging Economies
ISBN: 9781108486965
1st Edition
Authors: Sunil Mahajan
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