Question: Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRR of each investment
Assume that a company faces two mutually exclusive project options to invest. Initial costs and the cash flows along with the IRR of each investment are given below for each option. Given that interest is 8%, find A and B. Project 1 ($) Project 2 (5) -20000 -23450 8033 10180 B 0,10 Year 0 1 2 3 IRR B B 0,10 Select one: O a. A=11600, B=2000 b. A=4300, B=6000 C. A=26000, B-4000 d. A=7000, B =9000 e. A=10000, B=10000 f. A=22000, B=8000
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