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Consider the following two projects: Project C0 C1 C2 C3 IRR (%) A. -200,000 +120,000 +180,000 +150,000 51.8% B. -700,000. +500,000. +430,000. +200,000 33.5% Suppose
Consider the following two projects:
Project C0 C1 C2 C3 IRR (%)
A. -200,000 +120,000 +180,000 +150,000 51.8%
B. -700,000. +500,000. +430,000. +200,000 33.5%
Suppose the cost of capital is 10% and you do not have any budgetary constraints. Based on the given IRR's, which project will you choose?
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