Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects

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Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 15 percent.

a. What is the IRR for each project?b. What is the NPV for each project?c. Which, if either, of the projects should the company accept?

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Essentials of Corporate Finance

ISBN: 978-1260013955

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Nov 27, 2019 06:45 AM

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Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects

Question:

Year Project M Project N -$359,000 -$140,000 159,300 61,500 73,400 68,100 2 168,400 3 154,800 110,400 40,500

Step by Step Answer:

a The IRR for each project is M 140000 615001 IRR 734001 IRR 2 681001 IRR 3 405001 IRR 4 Using a ...View the full answer

Essentials of Corporate Finance

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