For the given cash flows below, assume the cash flow is the same in the next 2
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Question:
For the given cash flows below, assume the cash flow is the same in the next 2 years. Compute the NPV for each project, and compute the incremental IRR. Compare and explain why NPV always gives the correct decision.
ProjectInitial InvestmentYear 1 Cash Flow
A500,000125,000
B500,000120,000
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