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Project Two Project two involves the following cash flows: CF $(100), and the firm's cost of capital k is 10%. ($60). CF $155, and CF2-
Project Two Project two involves the following cash flows: CF $(100), and the firm's cost of capital k is 10%. ($60). CF $155, and CF2- Required: Determine the project's net present value (NPV) and internal rate of return (IRR). Do you expect Ralph to accept or reject the project? Do NPV and IRR produce consistent decision rules? Mutually exclusive projects Project A: Invest $1,000 today and receive $1,070 in one year Project B: Invest $5,000 today and receive $5,300 in one year. The firm's cost of capital k is 5%. Required: Determine each project's net present value (NPV) and internal rate of return (IRR Which project do you expect Ralph to select? Do NPV and IRR produce consistent decision rules
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