Projects A and B have the following cash flows: a. If the cash flows from the projects
Question:
a. If the cash flows from the projects are identical, which of the two projects would have a higher IRR? Why?
b. If C1B = 2C1A, C2B = 2C2A, and C3B = 2C3A, then is IRRA = IRRB ?
Transcribed Image Text:
YEAR | PROJECTA | PROJECT B -$1,000 C1A C2A C3A $2,000 C1B C2B C3B
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Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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