Question
You are considering two independent projects. Project A has an initial cost of $140,000 and cash inflows of $45,000, $80,000, and $50,000 for Years 1
You are considering two independent projects. Project A has an initial cost of $140,000 and cash inflows of $45,000, $80,000, and $50,000 for Years 1 to 3, respectively. Project B costs $120,000 with expected cash inflows for Years 1 to 3 of $55,000, $30,000, and $90,000, respectively. The required return for both projects is 15 percent. Based on IRR, you should:
Group of answer choices
Reject both projects.
Accept Project B and reject Project A.
Accept either one of the projects, but not both.
Accept both projects.
Accept Project A and reject Project B.
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