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Suppose a company is considering two independent projects, Project A and Project B.  The cash outlay for Project A is $14,000. The cash outlay for Project B is $20,000. The company's cost of capital is 12%. The following table shows the after-tax cash flows.  For each project, compute the NPV, the IRR, the MIRR, and indicate the accept/reject decision.

Year

Project A

Project B

1

$4800

$6700

2

$4800

$6700

3

$4800

$6700

4

$4800

$6700

 

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9530481

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