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Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project A Co -36,500 B -56,500 G G NPV at 11% 26,200 26,200
Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project A Co -36,500 B -56,500 G G NPV at 11% 26,200 26,200 +$ 8,368 39,500 39,500 +11,145 a. Calculate IRRs for A and B. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 deci Project A B IRR % % b. Which project does the IRR rule suggest is best? c. Which project is really best?
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Project C0 C1 C2 NPV at 11 NPV 30 A 36500 26200 26200 ...
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
