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Garage, Inc. has identified the following 2 mutually exclusive projects: Year Cash Flow A Cash Flow B 0 - $28,000 - $28,000 1 13,400 3,800
Garage, Inc. has identified the following 2 mutually exclusive projects:
Year | Cash Flow A | Cash Flow B |
0 | - $28,000 | - $28,000 |
1 | 13,400 | 3,800 |
2 | 11,300 | 9,300 |
3 | 8,700 | 14,200 |
4 | 4,600 | 15,800 |
a. what is the IRR for each of these projects?
b. if the required return rate is 10%, what is the NPV for each of these projects
c. at what discount rate would the compamy be indifferent between these 2 projects?
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