Question: Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 1 8 percent.
Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of percent.
a Compute the IRR for both projects.
b Based on the IRR, which project should you choose?
c Compute the NPV for both projects.
d Based on the NPV which project should you choose?
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