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Consider the two cash flow streams below: 0 1 2 Option Y 1000 -750 -750 Option X -1000 700 700 Which project has the higher
Consider the two cash flow streams below:
| 0 | 1 | 2 | |
| Option Y | 1000 | -750 | -750 |
| Option X | -1000 | 700 | 700 |
Which project has the higher IRR? Which project has the higher NPV if required return is
10%?
Answer: Option Y (31.87% vs. 25.69%); Option Z ($214.88 vs. $-301.65)
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Mastering Attribution In Finance
Authors: Andrew Colin
1st Edition
1292114029, 978-1292114026
