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Your firm is considering the following mutually exclusive projects: Both projects would be evaluated with a discount rate of 16% APR. Which is the best
Your firm is considering the following mutually exclusive projects:
Both projects would be evaluated with a discount rate of 16% APR. Which is the best choice and reason:
A. Choose A: IRR(A) > IRR(B), and NPV(A)>NPV(B)
B. Choose A: IRR(A) NPV(B)
C. Choose B: IRR(A) NPV(B)
D. Choose B: IRR(A) > IRR(B), but NPV(A)
Project A $23,000 13,000 9,500 8,500 Year Project B $2,200 1,300 950 850 0 2 3Step by Step Solution
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