Question: Consider that L.uxio has identified the following two mutually exclusive projects: Cash Flow (B) -$34,000 5,000 10,000 18,000 19,000 Year Cash Flow (A) -$34,000 16,500
Consider that L.uxio has identified the following two mutually exclusive projects: Cash Flow (B) -$34,000 5,000 10,000 18,000 19,000 Year Cash Flow (A) -$34,000 16,500 14,000 10,000 6,000 a) What is the IRR for cach of these projects? Based on IRR decision rule, which projedt b) If the required return is 11%, what is the NPV for each of these projects? Based on the c) Over what range of discount rates would the company choose project A? At what should the company accept? NPV decision rule, which project should the company accept? discount rate would the company be indifferent between these two projects? Explain
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