Question: You are to decide between two mutually exclusive projects. Let us name the projects as Project A, and Project B. Project A and Project B
You are to decide between two mutually exclusive projects. Let us name the projects as Project A, and Project B. Project A and Project B haveIRR of 20% and 17%years, respectively. However, Project A and Project B haveNPV of $10,000 and $20,000, respectively.The companys cost of capital is 10%. Which project will you recommend the company to choose, and why? Explain.
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