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Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 9%. The

Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 9%. The expected Free Cash Flows of the projects are as follows:

Period Annual Cash Flows Project A Annual Cash Flows Project B
0 ($15,000) ($15,000)
1 2,000 8,000
2 4,000 5,000
3 6,000 4,000
4 8,000 1,000

Compute the Internal Rate of Return (IRR) for "A". Show your inputs/work for partial credit.

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