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Only need help with 10.b 10. NPV versus IRR. Romboski, LLC, has identified the following two mutualy exclusive projects: Cash Flow (A) -$65,000 34,000 27,000

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10. NPV versus IRR. Romboski, LLC, has identified the following two mutualy exclusive projects: Cash Flow (A) -$65,000 34,000 27,000 21,000 17,000 Cash Flow (B) -$65,000 19,000 25,000 29,000 34,000 Year 4 a. What is the IRR for each of these projects? If you apply the IRR decision rule which project should the company accept? Is this decision necessarily correct? b. If the required return is 11 percent, what is the NPV for each of these projects! Which project will you choose if you apply the NPV decision rule? c. Over what range of discount rates would you choose Project A? Project B2A what discount rate would you be indifferent between these two projects? Ey

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