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9. Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 36,600 $ 36,600 1 18,930
9.
| Bruin, Incorporated, has identified the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) |
|---|---|---|
| 0 | $ 36,600 | $ 36,600 |
| 1 | 18,930 | 6,490 |
| 2 | 14,430 | 12,990 |
| 3 | 11,930 | 19,490 |
| 4 | 8,930 | 23,490 |
| a. What is the IRR for Project A? |
|
|
| b. What is the IRR for Project B? |
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| c. If the required return is 14 percent, what is the NPV for Project A? |
| d. If the required return is 14 percent, what is the NPV for Project B? |
| e. At what discount rate would the company be indifferent between these two projects? |
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An Introduction To Real Estate Finance
Authors: Edward Glickman
1st Edition
0123786266, 9780123786265
