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Company is choosing between two projects. The larger project has an initial cost of $100,000, annual cash flows of $30,000 for 5 years. The smaller project has an initial cost of $50,000, annual cash flows of $16,000 for 5 years. The projects are equally risky with a cost of capital of 10%. If the projects are independent, and you have been advised to prioritize the IRR method, which project or projects would you pick?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92304275

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