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6 of 9 (3 complete) This Question: 1 pt Your boss hands you the following information about two mutually exclusive projects. She adds the following:
6 of 9 (3 complete) This Question: 1 pt Your boss hands you the following information about two mutually exclusive projects. She adds the following: "Our discount rate is 10% and both projects have IRRs over 20%. Unfortunately, we are unable to implement both, so we will go with project A since it has the highest IRR of the two." How would you respond? Give a supporting numerical analysis. Projects Cost of Capital 10% 10% IRR 580% 22% Initial Cash Flow - $2000 - $170,000 Cash Flow In One Year $13,600 $207,400 B projects being selected by the NPV and IRR rules. This means that project has the higher NPV, which results in decision because the NPV of project A is $ and the NPV of project B is $ Ranking the projects by IRR would lead to (Round to the nearest dollar as needed.)
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