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What are the internal rates of return on projects

Problem:

Consider the following project cash flows

Year Project A Project B

0 investment -$200 -$300

1 60 200

2 70 100

3 80 100

4 80

1. Calculate the NPV of each project. Which project should be chosen if opportunity cost is 11%?

2. IRR. What are the internal rates of return on projects A and B?

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