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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 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: Year A B 0 -3,000 -4,000 1 ?? 5,333 1. If the IRR of project A is 33.33%, what is the cash flow of the project in year 1? 2. Which project should be selected?
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:
Year A B
0 -3,000 -4,000
1 ?? 5,333
1. If the IRR of project A is 33.33%, what is the cash flow of the project in year 1?
2. Which project should be selected?
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Options Futures And Other Derivatives
Authors: John Hull
11th Global Edition
1292410655, 9781292410654
