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A company is analyzing two mutually exclusive projects, A and B, whose cash flows are shown below:

Year A B
0 -2,000 -2000
1 1800 0
2 500 500
3 20 800
4 20 1600

The company's MARR is 9% and it can get an unlimited amount of capital at that cost.

What is the IRR of the better project?

Accounting Basics, Accounting

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