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As the director of capital budgeting for Denver Corp., you are evaluating two mutually exclusive projects with the following net cash flows: Project X Project
As the director of capital budgeting for Denver Corp., you are evaluating two mutually exclusive projects with the following net cash flows: Project X Project Z Year Cash Flow Cash Flow 0 -$100,000 -$100,000 1 50,000 10,000 2 40,000 30,000 3 30,000 40,000 4 10,000 60,000 If Denvers cost of capital is 15 percent, which project would you choose?
Neither project. | ||
Project X, since it has the higher IRR. | ||
Project Z, since it has the higher NPV. | ||
Project X, since it has the higher NPV. | ||
Project Z, since it has the higher IRR. |
please help!!
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