You are going to choose one of two investrnents. Both investments cost 80000, but investment A...

 

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You are going to choose one of two investrnents. Both investments cost £80000, but investment A pays £35000 a year for 4 years and investment B pays £30000 a year for five years. If your required return is 13% which should A because it pays back sooner you choose? a. b. A because its IRR exceeds 13% A because it has a higher IRR B because its IRR exceeds 13% e. B because it has a higher NPV C. d. You are going to choose one of two investrnents. Both investments cost £80000, but investment A pays £35000 a year for 4 years and investment B pays £30000 a year for five years. If your required return is 13% which should A because it pays back sooner you choose? a. b. A because its IRR exceeds 13% A because it has a higher IRR B because its IRR exceeds 13% e. B because it has a higher NPV C. d.

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A B 1 Cost 80000 80000 Ca... View the full answer