Two mutually exclusive investment projects have the, Ask an Expert

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Two mutually exclusive investment projects have the following forecasted cash flows:

Year	A	B
0	-$20,000	-$20,000
1	†10,000	0
2	†10,000	0
3	†10,000	0
4	†10,000	†60,000

a. Compute the internal rate of return for each project.

b. Compute the net present value for each project if the firm has a 10 percent cost of capital.

c. Which project should be adopted? Why?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91601178

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