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Person X is responsible for the potential projects and financial decisions. Assume that the discount rate is 20% Person X is considering a short-term project
Person X is responsible for the potential projects and financial decisions. Assume that the discount rate is 20% Person X is considering a short-term project that develops new electric vehicle designs. This project has a cost of $72M today and will generate $108M next year.
What is the NPV? Following the NPV rule, should mush accept this project? What is the internal rate of return (irr)? Based on the IRR rule, should musk accept this project? Does the IRR rule give the same answer as the NPV rule?
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