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The following lists an appraisal of projects with the different analysis tools NPV (at a discount rate of 10%) IRR(%) A -$1 8.0 B +$2

The following lists an appraisal of projects with the different analysis tools

NPV (at a discount rate of 10%) IRR(%)

A -$1 8.0

B +$2 11.0

C +$3 15.0

D +$4 10.8

a)What the -$1 NPV for project A means?

b)Why does the project D have the highest +NPV but the lowest IRR for projects with +NPV?

c)Project C has the highest IRR. Under what circumstances is project B preferable?

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