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Question: Your firm is considering two projects with the following cash flows:

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a. If the appropriate discount rate is 12%, rank the two projects.

b. Which project is preferred if you rank by IRR?

c. Calculate the crossover rate - the discount rate r in which the NPVs of both projects are equal.

d. Should you use NPV or IRR to choose between the two projects?

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  • Category:- Basic Finance
  • Reference No.:- M92285751

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