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Part D: Investment decisions Now consider that Luxio has identified the followin- two mutual] exclusive nro'ects: Cash Flow A Cash Flow B -_ $34 000

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Part D: Investment decisions Now consider that Luxio has identified the followin- two mutual] exclusive nro'ects: Cash Flow A Cash Flow B -_ $34 000 $34 000 16,500 5,000 14, 000 10 000 10 000 18 000 6, 000 19 000 a) What is the IRR for each of these projects? Based on IR decision rule, which project should the company accept? b) If the required return is 11%, what is the NPV for each of these projects? Based on the NPV decision rule, which project should the company accept? c) Over what range of discount rates would the company choose project A? At what discount rate would the company be indifferent between these two projects? Explain

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