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The HAT GmbH is planning to invest in new facilities for the production of headwear. The choices presented to the board will result in the
The HAT GmbH is planning to invest in new facilities for the production of headwear. The choices presented to the board will result in the following cashflows: The Cost of capital is 10%. Period 0 1 N 3 Project A -50,000 30,000 15,000 17,000 Project B -100,000 60,000 58,000 Project C -100,000 30,000 81,000 Project D -100,000 820,000 -778,000 What is the internal rate of return (IRR) of project alternative C and alternative D? Select one: A. The IRR of alternative C equals 11.27 %, the IRR of alternative D equals 5.40 %. B. None of the answers is correct. C. The IRR of alternative C equals 7.48 %, the IRR of alternative D equals 4.80 %. D. The IRR of alternative C equals 13.99 %, the IRR of alternative D equals 4.80 %. D D o
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