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12. NPV IRR Garage The following two items that arrange beds with each other. a. What is the IR ruler for each item? Using the
12. NPV IRR Garage The following two items that arrange beds with each other.
a. What is the IR ruler for each item? Using the decision rules of the IRR rule, which project will the company adopt? Is this decision necessarily correct?
b. If the required rate of return is 11%, what is the net present value of each project? If the company uses is the decision rule of the NPV rule, so which item will it choose?
C. When the discount rate is within what range, will the company choose Project A? In what range, will project B be selected? When the discount rate is what, does it make a difference to choose item A or item B? explain.
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