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Company XYZ is considering two mutually exclusive projects. Both projects are of equal risk and have a discount rate of 12%. The cash flows of

Company XYZ is considering two mutually exclusive projects. Both projects are of equal risk and have a discount rate of 12%. The cash flows of the two projects are as follows:

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Please find: a. Crossover rate of the two projects. b. NPVs and IRRs of the two projects. c. What is your decision between the two projects and why?

\begin{tabular}{crrrrr} Years & 0 & 1 & 2 & 3 & 4 \\ \hline A & 800 & 200 & 150 & 430 & 650 \\ B & 900 & 650 & 340 & 170 & 150 \end{tabular}

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