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Please help me A firm is considering two projects with the following cash flows. The required return for both projects is 12 percent. Year Project
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A firm is considering two projects with the following cash flows. The required return for both projects is 12 percent.
Year Project A Project B 0 -$675,000 -$160,000 1 297,000 75,000 2 389,000 75,000 3 184,000 85,000
Required - Using your calculator: a. Calculate the NPVs for both projects (4 marks) b. Calculate the IRRs for both projects (2 marks) c. Based on the above calculations, which project should the company choose if they are mutually exclusive? Explain. (3 marks)
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