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The TB &B Corporation has a 12 percent WACC and is considering two mutually exclusive investments with the following net cash flows. (Consider period 7
The TB &B Corporation has a 12 percent WACC and is considering two mutually exclusive investments with the following net cash flows. (Consider period 7 as the end of Project Bs life.)
Project A CF0=-$300 CF1=-$387 CF2=-$193 CF3=-$100 CF4=$600 CF5=$600 CF6=$850 CF7=-$180
Project B CF0=-$405 CF1=$134 CF2=$134 CF3=$134 CF4=$134 CF5=$134 CF6=$134 CF6=$0
a. What is each projects NPV?
b. What is each projects IRR?
c. What is each projects MIRR?
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