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ONLY Req A1 IRRb NEEDED The following table shows the forecast cash flows for two projects: Now suppose that the term structure is upward sloping
ONLY Req A1 IRRb NEEDED
The following table shows the forecast cash flows for two projects: Now suppose that the term structure is upward sloping and investors demand a higher return on the more distant flows as in the following table: a-1. Calculate the IRR on the two projects. a-2. Calculate the NPV on the two projects. a-3. Do the two measures give the same ranking for the two projects? Complete this question by entering your answers in the tabs below. Calculate the IRR on the two projects. Note: Do not round intermediate calculations. Round your answers to 2 decimal placesStep by Step Solution
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