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1. The following cash flows are associated with three alternatives under consideration by the firm: N (Year) 0 2 3 4 5 A1 (TL) 0
1. The following cash flows are associated with three alternatives under consideration by the firm: N (Year) 0 2 3 4 5 A1 (TL) 0 4,500 4,500 4,500 4,500 4,500 A2 (TL) -50,000 20,000 20,000 20,000 20,000 20,000 A3 (TL) -75,000 20,000 25,000 30,000 35,000 40,000 If interest rate for the firm is 12%, compare the alternatives using the internal rate of return method (IRR method) and incremental cash flow approach. Which alternative should be selected? Why
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