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Paragraph 2 Two mutually exclusive projects offer the following cash flows: CE2 CE1 Year 22000 -22000 0 2000 8000 1 12000 10000 2 10000 12000

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Paragraph 2 Two mutually exclusive projects offer the following cash flows: CE2 CE1 Year 22000 -22000 0 2000 8000 1 12000 10000 2 10000 12000 3 1000 2000 4 a) What is the IRR of each of the projects? Which project should the company accept if required rate of return -11%? b) If the required return is 9% what is the NPV for each of the projects? c) Profitability index

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