Question: Please show and explain work- simplified 3. Your division is considering two investment projects, each of which requires an up-front expenditure of 20 million. You
Please show and explain work- simplified
3. Your division is considering two investment projects, each of which requires an up-front expenditure of 20 million. You estimate that the investment will produce the following net cash flows: Year Project A Project B 1 $5,000,000 $20,000,000 2 10,000,000 10,000,000 3 20,000,000 6,000,000 a. What are the two projects net present values, assuming the cost of capital is 5%? 10%? 15%? b. What are the two projects IRRs at these same costs of capital? Show your work.
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