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Three project managers approach you about investment opportunities that they believe are value-enhancing for the firm. The cash flows for each project are listed below.
Three project managers approach you about investment opportunities that they believe are value-enhancing for the firm. The cash flows for each project are listed below. Assume that each project is equally risky, therefore they all have a discount rate of 5.00% per annum. Determine the internal rate of return of Project "A". Note: Report your answer as a percentage (1.23 vs. 0.0123 for an answer of 1.23%) Time 0 2 3 4 A -$1000 $800 $600 $400 Project B -$500 8900 $100 $100 C -$100 830 $30 $30 830 830
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