Diamond Hill Jewelers is considering the following independent projects: Which project(s) should be accepted if the required

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Diamond Hill Jewelers is considering the following independent projects:

Expected Net Cash Flows Machine D Machine Q Year $(2,500) $(2,500) 2,000 1,800 900 100 1,000 100 900

Which project(s) should be accepted if the required rate of return for the projects is 10 percent? Compute the NPV and the IRR for both projects.

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Essentials of Managerial Finance

ISBN: 978-0324422702

14th edition

Authors: Scott Besley, Eugene F. Brigham

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