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ABC Company is considering investing in two projects: Project A requires an initial investment of $150,000 and generates cash flows of $40,000 per year for

ABC Company is considering investing in two projects:

Project A requires an initial investment of $150,000 and generates cash flows of $40,000 per year for 5 years.

Project B requires an initial investment of $200,000 and generates cash flows of $50,000 per year for 6 years.

Create a table comparing the internal rate of return (IRR) and net present value (NPV) of each project.

Project

Initial Investment

Cash Flows (annually)

Maturity (Years)

IRR

NPV (at 10%)

A

$150,000

$40,000

5



B

$200,000

$50,000

6



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