Question: Company is considering two capital expenditures. Relevant data for the projects are as follows: Project Initial investment Annual cash inflow Life of project Salvage value

Company is considering two capital expenditures. Relevant data for the projects are as follows:

Project

Initial investment

Annual cash inflow

Life of project

Salvage value

A

$249,803

$47,980

7 years

$0

B

$254,795

$47,760

8 vears

$0

Splish Company uses the straight-line method to depreciate its assets.

Calculate the internal rate of return for each project

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