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Q5: Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 8 percent.
Q5: Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 8 percent. Time 0 1 Project A - 15000 4100 9000 7500 4000 Project B -7500 3750 6000 3900 0 2 3 4 The above two projects have conflicting rankings based on NPV and IRR. So calculate Incremental IRR to decide on one project and suggest which project should be selected
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