Question: Example #3 - Mutually Exclusive Projects Period Project A Project B 0 -$12,500 -$10,000 1 8,125 8,125 2 8,125 5,000 IRR ?? ?? NPV ??

Example #3 - Mutually Exclusive Projects Period Project A Project B 0 -$12,500 -$10,000 1 8,125 8,125 2 8,125 5,000 IRR ?? ?? NPV ?? ?? The required return for both projects is 10%. Which project should you accept and why? And what is the crossover rate? 17

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