Question: Consider the following two mutually exclusive projects: Cash Flows ($thousands) Project C0 C1 C2 C3 A -9,000 6,000 6,500 4,000 0 B -9,000 1,300 In
Consider the following two mutually exclusive projects: Cash Flows ($thousands) Project C0 C1 C2 C3 A -9,000 6,000 6,500 4,000 0 B -9,000 1,300 In perpetuity Question: What is the IRR for project B? Note: This project is a perpetuity with initial investment = -9,000, and it generates equal cash flows of 1,300 in perpetuity. Multiple Choice 14.4% 15.7% 10.7% 17.8% 16.7%.
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