Evaluate both projects with NPV and IRR, and determine what to do. You are faced with two

 

Evaluate both projects with NPV and IRR, and determine what to do.

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You are faced with two projects and have the opportunity to invest in either one or both of them. The cash flows are as follows. Project A B Your cost of capital is 8%. Year O -$400 $400 Year 1 $200 -$200 You are faced with two projects and have the opportunity to invest in either one or both of them. The cash flows are as follows. Project A B Your cost of capital is 8%. Year O -$400 $400 Year 1 $200 -$200

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To evaluate the projects using NPV Net Present Value and IRR Internal Rate of Return we need to disc... View the full answer