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Consider two investments A and B with the sequences of cash flows given in the table below. n Project A Project B 0 -$125,000 -$110,000
Consider two investments A and B with the sequences of cash flows given in the table below.
n Project A Project B 0 -$125,000 -$110,000 1 $35,000 $25,000 2 $35,000 $25,000 3 $140,000 $150,000
(a) Compute the IRR for each investment.
The rate of return for Project A is
The rate of return for Project B is
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