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Two projects being considered are mutually exclusive and have the following projected cash flows: (Compute both NPV and IRR). The cost of capital is 10%.
Two projects being considered are mutually exclusive and have the following projected cash flows: (Compute both NPV and IRR). The cost of capital is 10%.
Year Cash Flow A Cash Flow B
0 -$50,000 -$50,000
1 $15,625 $0
2 $15,625 $0
3 $15,625 $0
4 $15,625 $0
5 $15,625 $99,500
NPV= 1.(Cashflow A) 2.(Cashflow B)
IRR= 1. (Cashflow A) 2. (Cashflow B)
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