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HELP -All questions on page- 44. As the director of capital budgeting for ABC Corporation, you are evaluating two mutually exclusive projects with the following

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44. As the director of capital budgeting for ABC Corporation, you are evaluating two mutually exclusive projects with the following net cash flows: Year Project A Project B 0 100,000 $100,000 50,000 40,000 30,000 10,000 30,000 40,000 60,000 4 10,000 If ABC's cost of capital is 15 percent, which project would you choose? A. Neither project. B. Project X, since it has the higher IRR. C. Project Z, since it has the higher IRR. D. Project X, since it has the higher NPV. E. Project Z, since it has the higher NPV. 45. Gamma Analytics is considering two mutually exclusive projects, A and B. The projects have the following cash flows: Year Cash Flow A Cash Flow B 0 -$200 -$300 20 30 3 40 4 50 60 90 70 60 50 40 4 At what cost of capital would the two projects have the same net present value (NPV)? A. -47.96% 10.32% C. 12.69% D. 9.32% E. 8.Y5%

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