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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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