Question: Consider the following two mutually exclusive projects: Assume the risk - adjusted cost of capital is 1 1 percent. a . Calculate NPV , IRR,
Consider the following two mutually exclusive projects:
Assume the riskadjusted cost of capital is percent.
a Calculate NPV IRR, and Payback period for each project.
b If you apply the IRR criterion, which project should you choose? Why?
c If you apply the NPV criterion, which project should you choose? Why?
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