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 have IRR of 20% and 17% years, respectively. However, Project A and Project B have NPV of $10,000 and $20,000, respectively. The company's cost of capital is 10%. Which project will you recommend the company to choose, and why? Explain. (4 marks)
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