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Consider the following projects, all of which have the same riskiness (all figures in $1,000s): Which one has the highest IRR? Project A Project B

Consider the following projects, all of which have the same riskiness (all figures in $1,000s):

Which one has the highest IRR?

Project A

Project B

Project C

Project D

Project E

Initial Investment

$2,000

$2,000

$2,000

$2,000

$2,000

End Yr 1

-$525

$200

$125

$600

$1,000

End Yr 2

-$325

$200

$150

$500

$500

End Yr 3

-$50

$350

$200

$450

$500

End Yr 4

$125

$350

$225

$400

$0

End Yr 5

$500

$500

$350

$350

$0

End Yr 6

$1,000

$500

$500

$300

$250

End Yr 7

$1,500

$700

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