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both questions are connected to the data You are the treasurer for 100 Rock Associates. Your company is interested in making capital investments on all
both questions are connected to the data
You are the treasurer for 100 Rock Associates. Your company is interested in making capital investments on all projects that have an IRR greater than 12%. You have identified the following two capital investment projects with their cash flows as follows: Year Project A Project B -$43,500 -$43,500 0 1 21,400 6,400 2 18,500 14,700 3 13,800 22,800 4 7.600 25,200 Assume all cash flows are received at the end of the year. Year O cash flow is negative. All other cash flows are positive. Question 9 9. The internal rate of return for an investment project is best defined as the: O Discount rate that causes the NPV to equal zero O Difference between the market rate of interest and the discount rate O Market rate of interest less the risk free rate Minimum project acceptance rate set by management O Maximum rate that can be earned for a project to be accepted O WhPercentage that the Dean at RBS says it is Question 10 10. What action would you recommend the company take for both of these projects? Accept both projects Accept project A and reject project B Reject project A and accept project B O Reject both projects O Cant tell because there is not enough information O Fire the project manager Step by Step Solution
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