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Better Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of $2.5 million.The projects are expected to produce the following

Better Health, Inc. is evaluating two investment projects, each of which requires an up-front expenditure of $2.5 million.The projects are expected to produce the following net cash inflows:

Year Project A Project B

1 750,000 2,000,000

2 1,250,000 1,250,000

3 2,000,000 750,000

a. What is each project's IRR?

b. What is each project's NPV if the cost of capital is 10%?

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