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You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B Year
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B Year 0 - $50 -$99 a. What are the IRRS of the two projects? b. If your discount rate is 5.4%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? Year 1 $27 $20 Year 2 Year 3 Year 4 $20 $20 $17 $39 $52 $62
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a To calculate the Internal Rate of Return IRR for each project we need to find the discount rate th...
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
