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Npv versus irr

Question: NPV versus IRR. Here are the cash flows for two mutually exclusive projects:

Project C0 C1 C2 C3
A -$20,000 +$8,000 +$8,000 +$8,000
B -$20,000 0 0 +$25,000

1. At what interest rates would you prefer project A to B?

2. What is the IRR of each project?

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Solution Preview :

Prepared by a verified Expert

Microeconomics: Npv versus irr

Reference No:- TGS01744967

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : Payback and net present value

Q : Working capital investment required

Q : Internal rate of return of investment

Q : What is billy bob annual rate of return

Q : Npv versus irr

Q : Comparing investment criteria

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Solution Preview :

Prepared by a verified Expert

Microeconomics: Npv versus irr

Reference No:- TGS01744967

Recent Questions Asked Microeconomics

Q : Payback and net present value

Q : Working capital investment required

Q : Internal rate of return of investment

Q : What is billy bob annual rate of return

Q : Npv versus irr

Q : Comparing investment criteria

Q : Gdp-expenditures

Q : Calculate the totals change in a years gdp

Q : Calculate the expected rate of return

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