Question: A company is evaluating two mutually exclusive projects. Both require an initial investment of $240,000 and have no appreciable disposal value. Their expected profits over

A company is evaluating two mutually exclusive projects. Both require an initial investment of $240,000 and have no appreciable disposal value. Their expected profits over their five-year lifetimes are as follows:

The company’s cost of capital is 12%. Calculate the NPV and IRR for each project. Which project should be chosen? Why?

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