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You have two possible projects A and B with cash flows: 0 1 2 3 4 A -1,000 1,200 100 100 20 B - 1,000

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You have two possible projects A and B with cash flows: 0 1 2 3 4 A -1,000 1,200 100 100 20 B - 1,000 900 50 50 500 If the cost of capital of both projects is 6% what is the better project (the project that you should take) and what is its IRR? Project A with an IRR of 36.21% Project B with an IRR of 36.21% Project B with an IRR of 12.00% Project A with an IRR of 33.89% Project B with an IRR of 23.71%

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