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Projects A and B are alternatives for expanding Fahid Company's capacity. The firm's cost of capital is 13%. The cash flows for each project are

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Projects A and B are alternatives for expanding Fahid Company's capacity. The firm's cost of capital is 13%. The cash flows for each project are shown in the following table: Project A $80,000 Project B $50,000 Initial Investment Year Cash Inflows $15,000 $15,000 1 2 3 4 5 $15,000 $20,000 $25,000 $30,000 $35,000 $15,000 $15,000 $15,000 Answer the following questions: Calculate the net present value (NPV) for each project. Calculate the internal rate of return (IRR) for each project. (Because we do not use financial calculators, determine the range between the higher and lower whole percent)

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