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Clearly explain plz Consider two investment projects with equal lives and equal initial investments (CO), but different patterns of cash flows. One project, D, has
Clearly explain plz
Consider two investment projects with equal lives and equal initial investments (CO), but different patterns of cash flows. One project, D, has DECLINING cash flows (i.e. flows which get smaller over time) and the other, R, has RISING cash flows. The opportunity cost of capital is 5%. What is the approximate Internal Rate of Return for project R? NPV Profile Cross over rate = 9% NPV($) $35,000.00 $30,000.00 $25,000.00 $20.000.00+ $15,000.00 $10,000.00 $5,000.00 $0.00 -$5,000.00% -$10,000.00 5% 10% 15% 20% Discount Rate(%) - Line 1 - - Line 2Step by Step Solution
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