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Project NPV IRR A $800 20% B $1,000 15% Two mutually exclusive projects have the above information. The firms WACC is 12%. Applying the NPV

Project NPV IRR A $800 20% B $1,000 15% Two mutually exclusive projects have the above information. The firms WACC is 12%. Applying the NPV decision rule, which project (if any) should the firm select? Project A, because it has a higher IRR Both projects Project B, because it has a higher NPV Neither project

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