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Question: Assume there are three projects. The IRR of project A is 14%, the IRR of project B is 18%, the IRR of project C is 22%. Given the discount rate of 8%, the NPVs of all three projects are equal, at 50,000 for each of the three. You can undertake only one of the three projects.

If the discount rate drops to 3%, which project would you undertake?

If the discount rate increases to 50%, which project would you undertake?

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Category:- Basic Finance
Reference No.:- M92777127

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