Question: B. The Ultimate Choice Limited (UCL) is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative.

 B. The Ultimate Choice Limited (UCL) is contemplating two different projects

B. The Ultimate Choice Limited (UCL) is contemplating two different projects and decides to perform a financial analysis to determine which is more financially lucrative. Project A and B have the cash flows as shown and UCL uses a required rate of return of 10%. Compute the internal rate of return for both projects to determine which is worth of funding. (10 marks). Year A B 0 100,000-$400,000 1 20,000 75,000 2 50,000 100,000 3 50,000 150,000 4 25,000 150,000 5 500,000 750,000 2 5

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