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QUESTION: Projects A and B are mutually exclusive and have the following characteristics: Project A Initial cash outlay 1,000,000 Economic life 3 years B
QUESTION: Projects A and B are mutually exclusive and have the following characteristics: Project A Initial cash outlay 1,000,000 Economic life 3 years B 1,000,000 6 years Annual cash flows 500,000 300,000 Cost of capital 10% 10% Compute the NPV and IRR of the two projects and rank them.
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