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Consider two mutually exclusive projects A and B: Cash Flows (dollars) C2 26,600 40,000 Project Ce C1 NPV at 12% +$7,955 -37,000 -57,000 26,600 40,000
Consider two mutually exclusive projects A and B: Cash Flows (dollars) C2 26,600 40,000 Project Ce C1 NPV at 12% +$7,955 -37,000 -57,000 26,600 40,000 +10,602 a. Calculate IRRS for A and B. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Project IRR A % b. Which project does the IRR rule suggest is best? OProject A Project B c. Which project is really best? Project A Project B
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