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Time: 0 1 2 3 4 Investment A: -$100 50 40 30 20 Investment B: -$100 25 30 40 58 An investor is considering the
Time: 0 1 2 3 4 Investment A: -$100 50 40 30 20 Investment B: -$100 25 30 40 58 An investor is considering the two mutually exclusive investments shown above (numbers are in million dollars). Her cost of capital is 11%. Which of the following statements about these investments is true? The investor should take investment B since it has a greater IRR. The investor should take investment A since it has a greater IRR. The investor should take investment B since it has a greater NPV. The investor should take investment A since it has a greater NPV
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