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questions go together. i will like! Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company
questions go together. i will like!
Big Company is evaluating two projects, Project A and Project B. Both projects are of equal risk. Big Company has a WACC of 9%. The expected Free Cash Flows of the projects are as follows: Period Annual Cash Flows Project "A" Annual Cash Flows Project "B" 0 1 2 ($15,000) 2,000 4,000 6,000 8,000 ($15,000) 8,000 5,000 4,000 1,000 3 4 Compute the Internal Rate of Return (IRR) for "A". Show your inputs/work for partial credit. The Internal Rate of Return of Project "B" is 10.38%. If Projects "A" and "B" are independent, considering only at the IRR method, which project(s) should Big Company proceed with? Explain your answer The Internal Rate of Return of Project "B" is 10.38%. If Projects "A" and "B" are mutually exclusive, considering only at the IRR method, which project(s) should Big Company proceed with? Explain your Step by Step Solution
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