Question
Consider the following two mutually exclusive projects: Cash Flows ($) Project C 0 C 1 C 2 C 3 C 4 C 5 F -50
Consider the following two mutually exclusive projects:
Cash Flows ($) | ||||||
Project | C0 | C1 | C2 | C3 | C4 | C5 |
F | -50 | +50 | +60 | 0 | 0 | 10 |
G | -50 | 0 | 0 | +140 | +20 | 0 |
answer choices:
Project F if the discount rate is less than 10.73%, the incremental IRR, otherwise select B
Project G if the discount rate is less than 10.73%, the incremental IRR, otherwise select A
Project G if the discount rate is less than 6.13%, the incremental IRR, otherwise select A
Project G if the discount rate is less than 23.11%, the incremental IRR, otherwise select A
Project F if the discount rate is less than 23.11%, the incremental IRR, otherwise select B
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