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The required rate of return ( discount rate ) is 2 0 % . Our firm evaluates two mutually exclusive projects A and B .

The required rate of return (discount rate) is 20%. Our firm evaluates two mutually exclusive
projects A and B. Their cash flows are given in the following table:
If the IRR of project A is 30%, what is the cash flow of the project in year 1?
Which project should be selected?
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