Question: You are considering two mutually exclusive projects. Project A has cash flows of $125,000, $51,400, $52,900, and $63,300 for Years 0 to 3, respectively. Project
You are considering two mutually exclusive projects. Project A has cash flows of $125,000, $51,400, $52,900, and $63,300 for Years 0 to 3, respectively. Project B has cash flows of $85,000, $23,100, $28,200, and $69,800 for Years 0 to 3, respectively. Project A has a required return of 9 percent while Project B's required return is 11 percent. Should you accept or reject these mutually exclusive projects based on IRR analysis?
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