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Project A has an expected economic life of 5 years with an initial investment outlay of $250,000 at t=0 and expected cash flows of $72,000
- Project A has an expected economic life of 5 years with an initial investment outlay of $250,000 at t=0 and expected cash flows of $72,000 per year. Project B has an expected economic life of 25 years with an initial investment outlay of $1,200,000 at t=0 and expected cash flows of $145,000 per year. A and B are mutually exclusive projects and your company has a cost of capital of 10%. Calculate the NPV and the IRR for the projects. Construct the NPV profiles and also find the cross-over rate for the projects.
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Personal Finance
Authors: Jeff Madura
5th edition
132994348, 978-0132994347
