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( 4 points ) Consider three alternatives for a project: A , B , and Do Nothing. Assume a borrowing rate of 6 % (
points Consider three alternatives for a project: A B and Do Nothing.
Assume a borrowing rate of use this as the discount rate
a Calculate the NPW values for Options A and B rounded to the nearest dollar.
b Calculate the IRRs for Options A and B rounded to the nearest tenth of a percent.
c Calculate the incremental IRRs for options A and B
d Which option would you recommend? Why?
e It may be possible to borrow money at a different borrowing interest rate. Construct a choice table
for the three alternatives.
No excel please and do all thank you
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