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30, you should try to choose only one of the following two business alternatives. Your capital cost is 11%. a. What is the NPV of
30, you should try to choose only one of the following two business alternatives. Your capital cost is 11%. a. What is the NPV of each business under your cost of capital?
0 1 2 3 4 A -100 25 30 40 50 B -100 50 40 30 20 b. What is the IRR for each project?
c. What is the cost of capital that does not differ between the two businesses?
d. What should you do? 
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An Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Roberts Brooks
7th Edition
0324321392, 9780324321395
