Question: A company is trying to decide between two mutually exclusive projects. Each project has a cost of capital of 18%. Project A has an NPV
A company is trying to decide between two mutually exclusive projects. Each project has a cost of capital of 18%. Project A has an NPV of $215,000 and an IRR of 28.4%. Project B has an NPV of $154,000 and an IRR of $36.8%. Which project should the company choose if the goal of the firm is to maximize shareholder wealth?
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