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4) Company ABC is considering two mutually exclusive projects. The cash flows of the projects are as follows: Year Project A Project B $2,000,000-$2,000,000 1640,000
4) Company ABC is considering two mutually exclusive projects. The cash flows of the projects are as follows: Year Project A Project B $2,000,000-$2,000,000 1640,000 2 640,000 3 640,000 640,000 3,000,000 aCompute the NPV and IRR for the above two projects, assuming a 10% required rate of return. b.Discuss the ranking conflict. What decision should be made regarding these two projects? c. Calculate the equivalent annual annuity of Project A
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