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Calculate the net present value (NPV) for both projects, and determine which project should be accepted based on NPV. Round both NPVs to the nearest
- Calculate the net present value (NPV) for both projects, and determine which project should be accepted based on NPV. Round both NPVs to the nearest dollar.
- Calculate the internal rate of return (IRR) for both projects, and determine which project should be accepted based on IRR.
- Calculate the net present value (NPV) for both projects using the crossover rate as your discount rate. Round both NPVs to the nearest dollar.
Use the following information to answer the next three questions. Consider the cash flows from two mutually exclusive projects: Cash Flow Year Project A Project B 0 -$470,000-$460,000 1 $130,000 $357,000 $250,000 $140,000 2 3 $358,000 $130,000 The appropriate discount rate is 11.4%. Use the following information to answer the next three questions. Consider the cash flows from two mutually exclusive projects: Cash Flow Year Project A Project B 0 -$470,000-$460,000 1 $130,000 $357,000 $250,000 $140,000 2 3 $358,000 $130,000 The appropriate discount rate is 11.4%.
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a NPV of both projects Project A Year n Cash flow PVIF114 PV 0 47000000 1000 470000 1 13000000 0898 ...Get Instant Access to Expert-Tailored Solutions
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