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Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 10%. Year Project
Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 10%. Year Project A Cash Flow Project B Cash Flow 0 -$185,000 -$410,000 1 55,000 120,000 2 55,000 120,000 3 55,000 110,000 4 45,000 110,000 5 45,000 90,000 6 45,000 60,000 Which of the following statements is true concerning projects A and B? Project B is really cool. Project A has a larger IRR than project B. None of these are correct. Project A has a larger NPV than project B. Project B has a larger IRR than project A
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