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problem: 2 mutually exclusive investment projects have the following forecasted cash flows:

YEAR

A

B

0

-20,000

-20,000

1

10,000

0

2

10,000

0

3

10,000

0

4

10,000

60,000

[A] find out the internal rate of return for each project.

[B] find out the net present value for each project if the firm has a 10 percent cost of capital. Which project should be adopted? describe?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M918421

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