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QUESTION 39 The Sunnyside corporation has calculated the following information for the projects Y and Z: Project Initial Cost NPV at 16% Y 125,000 15,000

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QUESTION 39 The Sunnyside corporation has calculated the following information for the projects Y and Z: Project Initial Cost NPV at 16% Y 125,000 15,000 Z 125,000 18,500 Both projects have conventional cash flow patterns. Which of the following must be true? A. Project Z has the higher IRR B. Project Y has the higher IRR C. Both projects' IRRs are higher than 16%. OD. At a discount rate of 1896 both projects have negative NPV. E. None of the above

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