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3. Your division is considering two investment projects, each of which requires an up-front expenditure of 20 million. You estimate that the investment will produce
3. Your division is considering two investment projects, each of which requires an up-front expenditure of 20 million. You estimate that the investment will produce the following net cash flows: Year Project A Project B 1 2 3 $5,000,000 10,000,000 20,000,000 $20,000,000 10,000,000 6,000,000 a. What are the two project's net present values, assuming the cost of capital is 5%? 10%? 15%? b. What are the two projects' IRRs at these same costs of capital? Show your work
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