Your firm is considering two projects with the following cash flows: a. If the appropriate discount rate

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Your firm is considering two projects with the following cash flows:

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a. If the appropriate discount rate is 12%, rank the two projects.

b. Which project is preferred if you rank by IRR?

c. Calculate the crossover rate - the discount rate r in which the NPVs of both projects are equal.

d. Should you use NPV or IRR to choose between the two projects? Give a brief discussion.

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Principles Of Finance With Excel

ISBN: 9780199755479

2nd Edition

Authors: Simon Benninga

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Question Posted: Jun 07, 2024 01:18 AM

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Your firm is considering two projects with the following cash flows: a. If the appropriate discount rate

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6698 6889 5 Year A B C Project A Project B 0 -500 -500 10 11 12345 167 200 180 250 160 170 100 25 5 100 30

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Principles Of Finance With Excel

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