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Following are the estimated after-tax cash flows for two mutually exclusive projects: Year Project S Project T 0 ($16,000) ($15,000) 1 14,000 2,000 2 6,000

Following are the estimated after-tax cash flows for two

mutually exclusive

projects:

Year

Project S

Project T

0

($16,000)

($15,000)

1

14,000

2,000

2

6,000

18,600

The company's required rate of return is 16 percent. What is the internal rate of return

(IRR) of the project(s) the company should purchase?

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