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Please use math formula not financial calculator. Thank you Question 3 (10 points) Mary Inc. is considering mutually exclusive Projects A and B, whose cash
Please use math formula not financial calculator. Thank you
Question 3 (10 points) Mary Inc. is considering mutually exclusive Projects A and B, whose cash flows are shown below. If the decision is made by choosing the project with the higher IRR, will there be any value loss due to the IRR-based decision? If there is a loss, how much value will be forgone? The WACC is assumed to be 9.5% 9.5% WACC: Year 1 CFA CFB 0 -$2,020 -$4,100 $730 $1,400 2 S730 $1,500 $740 $1,520 4 $740 $1,530Step by Step Solution
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