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Consider the follow cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate (i.e., the cost of capital) for each project is
Consider the follow cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate (i.e., the cost of capital) for each project is 10 percent. (The quantities are the cash flows of each project at the given dates, in millions of dollars.)
Year, AZM Mini SUV, AZM Full SUV
0, -675, -930
1, 403, 415
2, 274, 467
3, 238, 319
What is the IRR of AZM Full-SUV project?
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