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Socks Close ANROOF 2015 30 2018 Down @ 11 2 1207 H & Consider the following two projects for the next two questions: Year o

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Socks Close ANROOF 2015 30 2018 Down @ 11 2 1207 H & Consider the following two projects for the next two questions: Year o Year 1 Year 2 Year 3 Year 4 Project Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A -100 10 50 60 N/A B -73 30 30 30 30 Discount Rate :15 .15 3. The incremental IRR of Project A over Project B is closest to: a 1.3% b. 10.4% c. 12.6% d. 21.6% e, 23.396 4. The profitability index for Project A is closest to a. 0.12 b. 0.15 c1.20 d12.00 e 50.00

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