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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 -$74,000 -$ 165,000 1 22,000 49,000 2 22,000 49,000 3 22,000 43,000 4 18,000 43,000 5 18,000 37,000 6 18,000 25,000 Which of the following statements is true concerning projects A and B? Project A has a larger IRR than project B. Project B has a larger IRR than project A Project A is really cool. Project A has a larger NPV than project B. None of these are correct
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