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You are considering the following two projects and can take only one. Your cost of capital is 1 1 . 5 % . The cash
You are considering the following two projects and can take only one. Your cost of capital is The cash flows for the two projects are as follows $ million:
a What is the IRR of each project?
b What is the NPV of each project at your cost of capital?
c At what cost of capital are you indifferent between the two projects?
d What should you do
Data table
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tableProjectYear Year Year Year Year A$$$$$
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