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Question: Choosing Between Projects

a. Calculate NPV and IRR for the following yogart stand in Seattle. Init Outflow = $3000 and CF1 = $4000. Use a required rate of return of 10%.

b. An espresso stand in Seattle consists of an initial outflow = $3750 and CF1 $5000. The required rate of return in 10%. What is the IRR and NPV for the espresso stand? AND if the projects are mutually exclusive then which project would you choose and why?

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