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A company is considering two mutually exclusive projects, A and B. Project A requires an initial investment of $100, followed by cash flows of $95,
A company is considering two mutually exclusive projects, A and B. Project A requires an initial investment of $100, followed by cash flows of $95, $20, and $5. Project B requires an initial investment of $100, followed by cash flows of $0, $20, and $130. What is the IRR of the project that is best for the company's shareholders? The firm's cost of capital is 10 percent.
A: 15.96 percent
B: 15.24 percent
C: 16.17 percent
D: 15.42 percent
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