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QUESTION 29 3 points Save Answer Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company

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QUESTION 29 3 points Save Answer Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 10%. The expected Free Cash Flows of the projects are as follows: Period Annual Cash Flows Project "A" Annual Cash Flows Project "B" 0 ($25,000) ($25,000) 20,000 1 5,000 2 10,000 10,000 3 15,000 8,000 4 20,000 6,000 Compute the Internal Rate of Return of Project "A". For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U S Paragraph Arial 10pt A % 5 3 X X T + 12 2 1 | (:) 9 # The Internal Rate of Return of Project B is 36.15%. If Projects A and B are independent, considering only your answer. the IRR method, which project(s) should Big Company proceed with? Explain For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U S Paragraph Arial 10pt :: v A T % Q ... ABC ilil x2 X2 T 1 19 [x] s } c 11 lili | # lil - + EXE E {i} Ra Ky O WORDS POWERED BY TINY QUESTION 31 3 points Save Answer The Internal Rate of Return of Project B is 36.15%. If Projects A and B are mutually exclusive, considering only at the IRR method, which project(s) should Big Company proceed with? Explain your answer. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I Y S Paragraph Arial 10pt . T + ID Q ... 6 ABC lil x? X g A - II > T 1 19 22 |x - + AA A E EX: {;} Ra Ky P O WORDS POWERED BY TINY QUESTION 32 3 points Saved

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