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Exercise 5: (Smart, Meggison, Gitman) A company establishes a hurdle rate of 20% for new investments. Consider two projects. a) Based on IRR, which project
Exercise 5: (Smart, Meggison, Gitman) A company establishes a hurdle rate of 20% for new investments. Consider two projects. a) Based on IRR, which project will you select? b) Based on NPV, which project will you select? Project Cashflow Now Cashflow in one year 1 -$100 +$150 2 +$100 -$150
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