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Better Health Inc., is evaluating two investment projects, each of which requires an up-front expenditure of $1.5 million. The projects are expected to produce the

Better Health Inc., is evaluating two investment projects, each of which requires an up-front expenditure of $1.5 million. The projects are expected to produce the following net cash inflows:

Year Project A Project B
1 $500,000 $2,000,000
2 1,000,000 1,000,000
3 2,000,000 600,000

What is each project's IRR?

a. Project A - 13%, Project B - 25%

b. Project A - 44%, Project B - 82%

c. Project A - 20%, Project B - 32%

d. Project A - 82%, Project B - 44%

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