(Answered) Browns industries is considering a project requiring an

Finance

Brown's Industries is considering a project requiring an initial investment of $200,000 followed by annual cash inflows of $45,000 for the next six years. A second six-year project has an initial outlay of $325,000.

a. How much would the second project have to generate in annual cash flows to have the same IRR as the first?

b. If Brown's cost of capital is 8%, how much would the second project have to generate in annual cash flows to have the same NPV as the first project.

Explain your answers.

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