Question: Consider the following two mutually exclusive projects: Cash Flows (in INR) Project C0 C1 C2 C3 A -100 +60 +60 0 B -100 0 0

Consider the following two mutually exclusive projects:

Cash Flows (in INR)

Project C0 C1 C2 C3
A -100 +60 +60 0
B -100 0 0 +140

a. Calculate the NPV of each project for discount rates of 0%, 10%, and 20%.

b. What is the approximate IRR for each project?

c. In what circumstances should the company accept project A?

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