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a There are two mutually exclusive investments. Assume an interest rate of 5 percent. Choose the better of the two investments. b Compute the relative

a There are two mutually exclusive investments. Assume an interest rate of 5 percent. Choose the better of the two investments.

b Compute the relative cash flows of investment (B A) of a. Comment on the computation of the internal rate of return of this investment.

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Investment Perlod 012 - $600 $500 $600 - 700 800 400 00

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