Question: cho Modulot ENVOOD OM PROBLEM 4 . Two mutually exclusive projects have projected cash flows as follows: END OF YEAR 0 1 2 3 4
cho Modulot ENVOOD OM PROBLEM 4 . Two mutually exclusive projects have projected cash flows as follows: END OF YEAR 0 1 2 3 4 Project A Project B -$2,000 - 2,000 $1,000 0 $1,000 0 $1,000 0 $1,000 6,000 a. Determine the internal rate of return for each project. b. Determine the net present value for each project at discount rates of 0.5, 10, 20, 30, and 35 percent c. Plot a graph of the net present value of each project at the different discount rates. d. Which project would you select? Why? What assumptions are inherent in your decision? 15-16 26C
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