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Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 1 8 percent.

Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 18 percent.
a. Compute the IRR for both projects.
b. Based on the IRR, which project should you choose?
c. Compute the NPV for both projects.
d. Based on the NPV, which project should you choose?
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