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Gamma Company is investigating project C, which has a cost of capital of 10%. C; -$18,000, $6,000, $12,000, $8,000. (a) The spread sheet says the

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Gamma Company is investigating project C, which has a cost of capital of 10%. C; -$18,000, $6,000, $12,000, $8,000. (a) The spread sheet says the IRR is 20%. Is project C acceptable? (b) What does your answer to part (a) say about the NPV of project C. Why? delta Co. is considering project D. D: -$3,000, $5,000, $5,000, $5,000, $20,000 D's cost of capital is 12%, and the spread sheet says that its IRR is 8.1% but its NPV at 12% is $838. Should Gamma take the project, even though the IRR is less than the cost of capital? Explain

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