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Better Health, Inc., is evaluating two investment projects, each of which requires and up-front expenditure of $1.5 million.The projects are expected to produce the following
Better Health, Inc., is evaluating two investment projects, each of which requires and up-front expenditure of $1.5 million.The projects are expected to produce the following net cash inflows:
YearProject AProject B
1$500,000$2,000,000
21,000,0001,000,000
32,000,000600,000
(a) Provide each project's IRR.
(b) Provide each project's NPV is the cost of capital is 10 percent.5 percent.15 percent.
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