Question: Company Kis considering two mutually exclusive projects. The cash flows of the projects are as follows: Year 0 1 2 3 4 5 6 7
Company Kis considering two mutually exclusive projects. The cash flows of the projects are as follows: Year 0 1 2 3 4 5 6 7 Project A Project B -$2,000,000 $2,000,000 500.000 500,000 500.000 500,000 500,000 500,000 500,000 5.650.000 a. Compute the NPV and IRR for the above two projects, assuming a 13% required rate of return. b. Discuss the ranking conflict. c. What decision should be made regarding these two projects
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