26. You are choosing between two projects, but can only take one. The cash flows for the...

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26. You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table: 0 2 3 A -$50 B -$100 20 225 240 250 60

a. What are the IRRs of the two projects?

b. If your discount rate is 5%, what are the NPVS of the two projects?

c. Why do IRR and NPV rank the two projects differently?

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Fundamentals Of Corporate Finance

ISBN: 9781292018409

3rd Global Edition

Authors: Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Oct 18, 2024 03:00 PM

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26. You are choosing between two projects, but can only take one. The cash flows for the...

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Fundamentals Of Corporate Finance

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