Question: 10 Question 24 Company is considering two mutually exclusive projects. The cash flows of the projects are as follows: Compute the NPV and IRR for
10 Question 24 Company is considering two mutually exclusive projects. The cash flows of the projects are as follows: Compute the NPV and IRR for the above two projects, assuming a 13% required rate of return. What decision should be made regarding these two Year Project A Project B O (Initial Outlay) $2,000,000 -$2.000.000 500,000 0 500,000 500.000 500,000 UA OOO 500,000 500,000 500,000 5,650.000 NPVA $211,305, NPV-401,592.64: IRRA-16:33 IRRE 15.998: Project B should be compted because it is the metall n proiect with the highest positive NPV. NPVA $511,305, NPV 401,592.64; IRRA-16.33K, IRR 16.9999 Project should be accepted because it is the mutually project with the highest positive NPV DNPVA-S4 1.305, NPV-901.592.64: IRRA-16.33%, IRRE - 19.999: Project should accepted because it is the mutually exclusive project with the highest positive NPV NPVA- $111 305, NPV-701.592.64 IRRA-16.33%, IRR - 15.999: Project Bshould be accepted because it is the with the highest positive NPV. Previous
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