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Question 1 10 Two projects A and B have internal rates of return of IRRIA)-8% and IRR(B)=12% and net present values of NPV(A)-1.100,000 and NPV1B-900.000.

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Question 1 10 Two projects A and B have internal rates of return of IRRIA)-8% and IRR(B)=12% and net present values of NPV(A)-1.100,000 and NPV1B-900.000. A financially constrained firm has enough cash to invest in A or B, but not in both simultaneously. If the CEO is interested in maximizing the value of the firm to his shareholders, he would Bendifferent between investing in A or B Use the cash to retire part of the firm's debt Use the cash to invest in the project B Use the cash to invest the wailable cash in a risk-free asset Use the cash to invest in the project A

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