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Cash Flow t= Project A Project B 0 -18,000 -20,000 1 5,000 6,000 2 6,000 7,000 3 6,000 6,500 4 5,000 5,000 5 5,000 5,000
Cash Flow t= | Project A | Project B |
0 | -18,000 | -20,000 |
1 | 5,000 | 6,000 |
2 | 6,000 | 7,000 |
3 | 6,000 | 6,500 |
4 | 5,000 | 5,000 |
5 | 5,000 | 5,000 |
What is the NPV of Project A? If the required rate of return is 10%, then do you accept the project?
and
What is the IRR of Project B? If the required rate of return is 10%, then do you accept the project?
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