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NPV & IRR with Constraints The following are the cash flows of two independent projects. If the opportunity cost of capital is 10%, Year
NPV & IRR with Constraints The following are the cash flows of two independent projects. If the opportunity cost of capital is 10%, Year Project A Project B 0 $ (280) $ (280) 1 160 180 2 160 180 3 160 180 4 160 13. Calculate the NPV for both projects. 14. Which project would you pursue if you have no constraints? The following are the cash flows of two projects. Year Project A Project B 0 $(250) $(250) 1 130 150 2 130 150 3 130 150 4 130 15. Calculate the NPV for both projects if the discount rate is 11% 16. Which project is worth pursuing if they are mutually exclusive?
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