Question: Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRRs of each investment
Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRRs of each investment are given below for each option. Given that interest is 8%, find A and B. Project 1 (s) Project 2 (S) -20000 Year 0 1 2 3 IRR 8033 B 0,10 -23450 10180 B B 0,10 Select one: a. A26000. B=4000 b. A=10000, B = 10000 CA=11600. B=2000 d. A 4300. B=6000 BA7000. B =9000 A=22000, B=8000
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