We have two projects, E and F, and their cash flows are indicated in the table below.
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Question:
We have two projects, E and F, and their cash flows are indicated in the table below. Note that a negative number is cash outflow, and a positive number is cash inflow.
Suppose that we follow the IRR rule and decide that we will take project E but reject project F.
What will be the rate of cost of capital used in making this decision?
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
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