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Your professor is considering two mutually exclusive investment opportunities. The first opportunity involves a lawn mowing service for actresses and models in the Hollywood region
Your professor is considering two mutually exclusive investment opportunities. The first opportunity involves a lawn mowing service for actresses and models in the Hollywood region of California. The second is a chihuahua walking service for the same clientele. The mowing business requires an initial investment of $75,000 and produces cash flows of $25,000, $35,000, and $41,000 over the next three years, respectively. The dog walking service will require a smaller investment of $25,000 and produces cash flows of $5,000, $13,000, and $18,000. What is the IRR of the project that should be selected if interest rates are 10.23%
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