Consider the two investment alternatives given in Table P7.50.
The firm's MARR is known to be 15%.
(a) Compute the IRR of project B.
(b) Compute the NPW of project A.
(c) Suppose that projects A and B are mutually exclusive. Using the IRR, which project would you select?
TABLE P7.50

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Net Cash Flow Project A -$10,000 5,500 5.500 5.500 30% In Project B -$ 20,000 40,000 IRR ( 1 5%) 6301