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A firm is analyzing two mutually exclusive projects with the following cash flows:

Project A Project B

Year Cash Flow Cash Flow

0 -$50,000 -$30,000

1 10,000 6,000

2 15,000 12,000

3 40,000 18,000

4 20,000 12,000

If the company's WACC is 10%, what is the NPV of the project with the highest IRR?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9865456

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