Company k is considering two mutually exclusive projects, Ask an Expert

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Company K is considering two mutually exclusive projects. The cash flows of the projects are as follows:

Year Project A Project B
0 -2,000,000 -2,000,000
1 500,000
2 500,000
3 500,000
4 500,000
5 500,000
6 500,000
7 500,000 5,650,000

1- compute the NPV and IRR for the above two projects, assuming a 13% required rate of return.
2- discuss why the ranking conflict
3- what decisions should be made regarding these two projects?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9863206

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