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Please urgent solve it accurately and completely. 5) You are considering two mutually exclusive projects that have been assigned the same discount rate of 10.5
Please urgent solve it accurately and completely.
5) You are considering two mutually exclusive projects that have been assigned the same discount rate of 10.5 percent. Project A has an initial cost of $54,500, and should produce cash inflows of $16,400, $28,900, and $31,700 for Years 1 to 3, respectively. Project B has an initial cost of $79,400, and should produce cash inflows of $1000, $48,000, and $42,000, for Years 1 to 3, respectively. What is the incremental IRR? Show your calculations? 6- You are planning to invest in Project (A) that has an initial cost $85,000. This project is expected to generate cash flows of $35,000, $65,000, and $22,000 over the next three years, respectively. After three years, the project will be worthless. What is the net present value of this project if the applicable discount rate is 12%. Would you invest in this project? Show your formula/calculation/explanationStep by Step Solution
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