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Projects Y and Z are mutually exclusive projects. Their cash flows and NPV profiles are shown as follows. Year 0 1 Project Y Project Z

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Projects Y and Z are mutually exclusive projects. Their cash flows and NPV profiles are shown as follows. Year 0 1 Project Y Project Z -$1,500 --$1.500 $200 $900 $400 $600 $600 $300 $1,000 $200 4 ? Project Y 8 DO 800 Project 400 NPV (Dollars) Project 2 200 0 200 14 14 0 8 10 12 16 18 20 DISCOUNT (REQUIRED) RATE (Percent) If the required rate of return for each project is 2%, do the NPV and IRR methods agree or conflict? The methods conflict. The methods agree

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